Private Equity Taking Center Stage
In every investment cycle, there are different factors that impact valuations and transaction volume. In the seniors housing and care acquisition market, there have been periods when public REITs came to dominate acquisition activity, then there were nontraded REITs that took center stage (at least for smaller transactions), and there has been the private equity (PE) market, which has very different investment criteria and time horizons than many of the other buyers. The two largest acquisitions by private equity firms in the seniors housing and care market occurred about 10 years ago. This was The Carlyle Group’s acquisition of Manor Care for $6.3 billion and The Fortress Group’s purchase... Read More »Quality Care Properties Seeking Receiver for HCR ManorCare
Quality Care Properties is taking its issues with HCR ManorCare (the lack of full rent payments) one step further. Late yesterday QCP announced that it is initiating a legal process to appoint an independent receiver to oversee the operation of the skilled nursing and assisted living properties that it owns which are leased to HCRMC. Apparently, the two companies had previously agreed that QCP would have the right to appoint a receiver to operate the properties if HCRMC defaulted on the leases. That default has already occurred. Assuming the California State Court appoints a receiver, QCP plans to start transitioning the properties to new owners and operators. They believe there will... Read More »
Is The Carlyle Group Going To Sell HCR ManorCare?
While we are sure Carlyle would like to divest HCR, they may sell their German SNF company first. Okay, so is The Carlyle Group going to sell its HCR ManorCare portfolio company or not? Well, we may not know that answer for a few weeks, maybe days, but the large PE firm is on the move to dispose of other nursing facility assets. Just not in this country. Apparently, Carlyle is planning to sell its German nursing home company, Alloheim, which is the third largest nursing home company in Germany with more than 124 facilities in 2016. Carlyle bought it in 2013 for about 180 million euros when the company had just 49 facilities, up from 13 when London-based private equity firm Star Capital... Read More »
HCR ManorCare Fails To Pay Rent, Again
Quality Care Properties receives partial rent payment for the second month in a row, triggering a notice of default. In our June issue of The SeniorCare Investor, we laid out the issues in the battle between Quality Care Properties and HCR ManorCare, including the partial rent that HCRMC paid on June 1. The battle escalated this week when HCRMC paid just $8.2 million of the $39.5 million it owed QCP for July rent. Quality Care sent a notice of default demanding payment of all current and past due rent by July 14, which comes to $79.6 million. I don’t think they will comply with the demand. Otherwise, why waste everyone’s time with these partial payments? Is this gamesmanship on the part of... Read More »Schedule a demo
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