Newcastle Closes Purchase Of 51 Senior Housing Properties For $1.04 Bln

(RTTNews) - Newcastle Investment Corp. (NCT), Tuesday said it completed the previously announced acquisition of 51 independent living senior housing properties from an affiliate of Holiday Retirement, for $1.04 billion.

The consideration was funded with $720 million of non-recourse, fixed-rate mortgage debt and $320 million of equity. The debt has a weighted average coupon of 4.15 percent, and includes a $357 million loan with a term of 7 years and a $363 million loan with a term of 10 years. In line with the 17-year master lease, the properties will still be operated by Holiday pursuant. The initial lease yield is 6.5%, with 4.5% increases in years 2 to 4 and increases based on the Consumer Price Index in years 5 to 17.

Newcastle has invested more than $500 million of equity throughout the past 18 months to buy 84 senior housing properties with over 10,000 beds.