Westport-led JV sells assisted-living portfolio

A healthcare REIT has acquired a portfolio of 10 nursing facilities in the southeastern US from a venture between Westport, Reichmann Development and Wellington Healthcare Services. Wellington will continue to operate the facilities, which sold for $167 million.

A joint venture led by Westport Capital Partners has sold a portfolio of 10 US nursing facilities to Griffin-American Healthcare REIT II for $166.5 million. 

According to a statement released by the venture, Westport, Reichmann International Development and Wellington Healthcare Services sold the underlying real estate of Wellington’s skilled nursing facility portfolio, which encompasses 1,364 beds at 10 properties in the southeastern US. As part of the transaction, Wellington will continue to operate the facilities.

Westport and Reichmann acquired a majority interest in Wellington in 2007, at which point the healthcare services firm controlled 11 senior care properties across Alabama, Georgia, Louisiana and Tennessee. During the holding period, Westport and Reichmann worked with management to buy the leasehold interest in four of the properties, divest two non-core assets and acquire an additional property in Georgia. 

Russel Bernard, managing principal of Westport, said in a statement: “Wellington’s management team was successful in growing the company’s operating income by a double-digit compounded annual growth rate since 2007. The team was able to achieve this performance by repositioning the assets and driving improved occupancy, all the while focussing on quality of patient care.”