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Formation Capital picks up US healthcare properties

Formation is purchasing a portfolio of 27 assisted living facilities in the northeastern US on the heels of its $2bn acquisition last year of Genesis Healthcare with JER Partners.

Formation Capital, a US-based underwriter and asset manager of senior housing and healthcare properties, has agreed to buy long-term care provider Haven Healthcare for an undisclosed sum. Haven currently operates 27 facilities in the Northeastern US.

The deal, expected to close on August 1, is subject to pending regulatory and licensing approvals and a due diligence period. Post-transaction, Formation Capital and its partners will own or lease Haven skilled nursing and assisted living facilities in Connecticut, Massachusetts, New Hampshire, Rhode Island and Vermont.

Genesis HealthCare, a provider of long-term care services, will manage and operate the facilities. Formation and McLean, Virginia-based private equity real estate firm JER Partners acquired Genesis Healthcare last year in a deal valued at approximately $2 billion (€1.3 billion). At the time of sale, Genesis had a portfolio of 220 skilled nursing and assisted living facilities in the US.

Formation Capital is currently invested in more than $3 billion of assets.