* Deal for $3.35 bln or $11.50/shr
* Marks co's second acquisition in healthcare sector
* Shares up as much as 8 pct
(Adds background, conference call comments, updates share
By Mridhula Raghavan
Aug 5 NorthStar Realty Finance Corp said
it would buy Griffin-American Healthcare REIT II Inc for $3.35
billion as it looks to take advantage of rising demand for
senior care facilities in a consolidating healthcare real estate
The real estate finance company's shares rose as much as 8
percent in afternoon trading.
The healthcare real estate sector has witnessed a number of
deals this year as companies jostle for a share of the growing
senior care market.
Ventas Inc, one of the largest U.S. healthcare real
estate investment trusts (REITs), said in June that it would buy
American Realty Capital Healthcare Trust Inc for about
Ventas also bought 29 independent senior housing communities
in Canada from Holiday Retirement Corp for $900 million.
Brookdale Senior Living Inc said in February that it
would buy Emeritus Corp for about $1.4 billion, creating
the largest owner-operator of senior housing in the United
NorthStar's acquisition of Griffin-American is the company's
second deal in the sector in 2014.
In March, the company bought 43 private-pay senior housing
facilities and 37 skilled nursing facilities for about $1.1
billion from Formation Capital and Safanad Limited.
Through its acquisition of Griffin-American, a non-traded
REIT, NorthStar will add 295 healthcare-related properties in
the United States and Britain to its portfolio.
The deal puts NorthStar's healthcare venture in a good
position to continue growing through acquisitions, joint
ventures and other strategic transactions, Chief Executive David
Hamamoto said on a conference call.
Some analysts say that NorthStar's expanded healthcare
portfolio could increase the likelihood of the company divesting
its healthcare business as a standalone REIT.
But the company said on a conference call that it was
focused on building the business and was not looking to spin it
off right away.
NorthStar will pay Griffin-American shareholders $7.75 per
share in cash and $3.75 per share in NorthStar common stock for
each Griffin-American share they own, NorthStar said.
As part of the deal, NorthStar will also assume $600 million
in debt from Griffin-American. The deal is likely to close in
the fourth quarter of 2014, NorthStar said.
UBS Investment Bank and CS Capital Advisors are financial
advisers to NorthStar. BofA Merrill Lynch, Robert A. Stanger &
Co Inc and KeyBanc Capital Markets Inc are advising
NorthStar shares were up 6.7 percent at $17.22 in afternoon
trading on the New York Stock Exchange on Tuesday.
(Editing by Simon Jennings)