Real estate investment trust Welltower has sold its $7.2bn (€6.18bn) US outpatient medical asset portfolio to Remedy Medical Properties and Kayne Anderson to focus on its seniors and wellness housing communities.
The NYSE-listed firm has sold the 18m sqft portfolio comprising 296 properties in 34 states, in a deal that makes the Remedy and Kayne Anderson Real Estate partnership the largest owner of outpatient medical buildings in the US.
As a result of the transaction, Remedy and Kayne Anderson Real Estate now own over 52.4m sqft across approximately 1,104 properties in 44 states. The deal involves Remedy assuming all operational responsibilities from Welltower, including property management and leasing functions.
Welltower will retain a preferred equity position and a profits interest in the underlying portfolio.
Shankh Mitra, CEO of Welltower, said: “With our announcement today on exiting operations of our outpatient medical business, we are now singularly focused on operations and technology transformation to elevate the experience of mature and older adults in our communities and that of site level employees.“
Al Rabil, CEO of Kayne Anderson Real Estate, said: “As long-term investors in the medical office space, we understand the importance of scale and investing alongside experienced partners. This acquisition reinforces our position as leading institutional investors in the outpatient healthcare sector and underscores our long-standing, successful partnership with Remedy.”
Peter Westmeyer, founder and CEO of Remedy Medical Properties, said: “This transaction strengthens Remedy’s commitment to its healthcare tenants by combining two best-in-class platforms to create a singular leading, hands-on, data-driven, tenant-first foundation in outpatient medical real estate.”
Joe Magliochetti, CIO of Remedy Medical Properties, said: “By adding this portfolio, we’ve expanded our size and scale by nearly 60%, demonstrating the strength and capability of our platform.
“We are excited about the expansion of our footprint in several major markets across the country, and the growth in our relationship with many of the best health systems and providers in the industry.”
David Selznick, CIO of Kayne Anderson Real Estate, said: “Outpatient medical real estate continues to demonstrate strong, durable fundamentals, supported by demographic trends and the ongoing shift toward cost-effective community-based care.
“This transaction meaningfully enhances the quality, diversity and scale of our medical office portfolio and positions us to capture ongoing sector growth in partnership with Remedy.”
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