Blackstone Real Estate Partners VIII and Brookdale Senior Living are jointly investing in a US retirement portfolio.

The joint venture, in which Blackstone’s latest opportunistic fund – for which the manager raised $15.8bn in October last year – has an 85% stake, will hold 64 assets leased to Brookdale.

US healthcare REIT HCP is selling the portfolio for $1.125bn, and the deal is expected to close early next year.

Mike McKee, chief executive at HCP, said the sale was part of “several important strategic priorities” for HCP, including reducing its Brookdale concentration and improving the lease coverage of its senior housing portfolio and diversifying operator relationships.

In addition to holding a 15% stake, Brookdale will manage the 5,927 units.

Andy Smith, Brookdale’s president and chief executive, said the deal should boost the company’s returns on invested capital and “significantly improve” cash flow, while reducing lease leverage.