HCP to Spin Off HCR ManorCare Portfolio Into Separate REIT
- New REIT will own skilled-nursing and assisted-living centers
- Transaction will allow HCP to focus on growing businesses
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HCP Inc. will spin off its HCR ManorCare portfolio of skilled-nursing and assisted-living assets into a separate publicly traded real estate investment trust, enabling the parent company to focus on growing businesses including senior housing and medical offices.
The new REIT will own more than 320 properties earning an annual rent of about $485 million, Irvine, California-based HCP said in a statement on Monday. The spinoff is expected to be completed in the second half of 2016. After its completion, HCP will have more than 860 properties, generating income of about $1.4 billion a year.