GE Healthcare Financial to buy 186 nursing homes
GE Healthcare Financial Services has agreed to purchase 186 nursing homes for $1.4 billion from Formation Capital LLC.The properties, contained in six senior housing portfolios, represent 21,000 beds with an average occupancy rate of 90%, the company said. GE gains ownership of physical assets operated by Centennial Healthcare Corp., Epsilon Healthcare, Harrington Healthcare, Laurel Healthcare Providers, Opis Health Services, and Sovereign Health Services. Half the properties are located in Florida, with the balance spread across 20 additional states.
"We look forward to increasing our investments in the long-term care market in the years ahead, "said John Cobb, senior managing director for GE Healthcare Financial Services' real estate finance team. Under the deal announced Monday, current providers will continue to manage the properties under long-term leasing agreements.
With 86 customers in the healthcare real estate market, including operators and investors, GE Healthcare Financial Services now finances five of the top 10 nursing home operators and five of the top 10 assisted-living companies. Formation Capital is based in Alpharetta, GA.