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Omega to pay $175m for Healthcare Homes

Omega Healthcare Investors has announced that it is in the process of completing a sale and leaseback transaction with Healthcare Homes for approximately $175 million (£115.2 million).

The deal, first reported by HealthInvestor, will allow the management team of the care group to buy out current owners Bowmark Capital.  

In a conference call for its first quarter earnings, Omega’s chief operating officer Dan Booth said that the US REIT would acquire Healthcare Homes’ 23 facilities and lease them back to the company on a 12-year master lease with an initial cash yield of 7% and annual escalators of 2.5%.

“This is Omega’s first foray into the UK in many years and was precipitated primarily by the strength of Healthcare Homes’ management team lead by Graham Lomer and David Bates,” said Booth. “We believe Healthcare Homes will provide an excellent platform for future growth in terms of both new acquisitions and capital expenditures.”

Graham Lomer is chief financial officer of Healthcare Homes and David Bates is chief operating officer.

KPMG is running the sale process.

Maryland-based Omega has a portfolio of 560 healthcare facilities across 37 US states. It has a market cap of $6.6 billion.

Healthcare Homes runs 23 residential and nursing homes for the elderly across Bedfordshire, Essex, Norfolk and Suffolk. The business also operates specialist care services for people with acquired brain injuries and multiple sclerosis as well as a domiciliary care division, Manorcourt Homecare, and sheltered housing.

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Posted on: 06/05/2015

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