In breaking news, Kayne Anderson Real Estate Advisors announced that it entered into a definitive merger agreement to buy Sentio Healthcare Properties, which is partly owned by KKR (NYSE: KKR), in a transaction valued at $825 million. Kayne is paying $14.37 per Sentio share in cash about 11.5 million shares) with some upward adjustments that will most likely take the price to $14.65, with the deal expected to close in the third quarter. Sentio is a public, non-traded REIT that owns a mix of seniors housing properties and MOBs. Citigroup Global Markets and Holliday Fenoglio Fowler (nice month they are having) were the financial advisors to Kayne, and Robert A. Stanger & Co. and UBS Investment Bank advised Sentio.
The portfolio is about 92% seniors housing and care, and of that, almost all is assisted living and memory care with a smattering of independent living. In addition, there are two skilled nursing facilities, two medical office buildings, one LTAC and one inpatient rehab facility. Most of the acquisitions were completed between 2009 and 2015, with little activity in 2016. That may have precipitated the sale if it was getting more difficult to find attractively priced properties. Not a bad time to exit at a market peak.
