Cindat Capital Management Completes Acquisition of Healthpeak’s UK Care Home Portfolio
Cindat Capital Management Limited ("CCM") announced today the completion of the acquisition of a large, high-quality UK care home portfolio comprised of 67 properties ("UK Portfolio") from the US-based healthcare REIT, Healthpeak Properties, Inc. (formerly HCP, Inc.).
The UK Portfolio is primarily purpose-built and offers more than 3,500 beds. The properties are located throughout England, Scotland and Northern Ireland with concentrations in attractive regions including Greater London, the Manchester to Leeds corridor and Edinburgh. The homes are let to leading national care home operators, HC-One and Maria Mallaband Care Group, under long-term leases that feature annual RPI-linked rent escalators subject to a cap and collar.
CCM purchased a majority stake of 51% in the UK Portfolio in June 2018 as the first step of a phased take-out of Healthpeak. CCM recently completed its acquisition by acquiring the remaining 49% in partnership with premier, large-cap US healthcare REIT, Omega Healthcare Investors, Inc. (NYSE: OHI).
The acquisition of the UK Portfolio increases the size of CCM's healthcare platform to approximately $1.5 billion in assets under management consisting of 107 senior care facilities with nearly 8,000 beds located throughout the US and UK.
"With solid fundamentals driven by aging demographics and the supply-demand imbalance, coupled with a temporary dislocation in the market created by the political landscape, we believe the UK's senior care sector represents an attractive long-term investment opportunity," said Allan He, Senior Partner at CCM. "This transaction epitomizes CCM's ability to utilize its deal experience, industry expertise and relationships to yield optimal outcomes."
John Stasinos, Managing Director and Head of Healthcare at CCM added, "We have a significant appetite for investing in the UK care home space and will seek to continue to build our platform as we look to capitalize on our pipeline of future opportunities. We are excited about our partnership with Omega, a leader in health care real estate and an experienced investor in the UK. We feel that we are poised to be the leading capital provider to the UK senior care sector."
About Cindat Capital Management Limited
Founded in 2013, Cindat is a private equity investment platform that primarily invests in global real estate assets on behalf of its institutional investors. Cindat invests across the capital stack where it identifies relative value, including investments in direct real estate lending, securitized debt, preferred equity and common equity in the key markets of the world. As of June 30, 2019, Cindat manages $2.5 billion of AUM representing $8.6 billion of asset value across 22 distinct portfolio investments located in the United States, the UK, and Asia-Pacific.
CCM has also built a global portfolio of high-quality healthcare and senior living assets. With these and other targeted strategies globally, CCM provides its investors a full range of investment alternatives and return profile.