The Canada Pension Plan Investment Board has made its debut in healthcare real estate, entering into a joint venture with Health Care REIT to buy a portfolio of eight medical office buildings in Southern California.
The transaction, in which CPPIB and Healthcare REIT (HCN) will take a 50.5 percent stake in the portfolio and the seller will retain 49.5 percent, values the buildings at $449 million.
The buildings have a total footprint of 437,875 square feet. The seller received both cash and operating partnership units in the portfolio in exchange for the 50.5 percent stake bought by the joint venture.
The joint venture, which is 45 percent CPPIB and 55 percent HCN, is expected to eventually own 100 percent of the portfolio if the seller exercises its option to convert its remaining operating partnership units to cash or shares of HCN.
To read more, visit PERE's sister publication, Private Healthcare Investor.
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