20 Sabra Health Care Facilities Command $103M
- Jan 04, 2018
Sabra Health Care REIT has sold 20 facilities leased to Genesis Healthcare Inc., to an undisclosed buyer for $103.3 million. The facilities are located in Kentucky, Ohio and Indiana, and are part of an original set of 35 facilities marketed for sale under the previously announced memoranda of understanding with Genesis.
“These are high-quality, skilled nursing facility assets operated by Genesis HealthCare, one of the largest post-acute care providers in the country,” Harold Andrews, Sabra Health Care REIT’s CFO, told Commercial Property Executive. “These are need-based operations and so quality of the asset and the general healthcare market in the area are the most important aspects to consider. This was a strategic move for Sabra to reduce its exposure to Genesis as it is our largest tenant,” Andrews added. It has been a long-standing goal to reduce our exposure to Genesis through growth and selective asset sales and this is part of that strategy.”
Under the terms of the deal, Genesis’ annual rent obligations to Sabra will be reduced by $9.3 million. According to Andrews, Sabra anticipates using the proceeds from the sale to repay borrowings under its revolving credit facility.
Earlier this year, Sabra Health Care REIT Inc., combined with Care Capital Properties Inc., in an all-stock merger, created a diversified portfolio of 564 investments across 43 states and Canada.