New York, NY – July 2, 2015
Safanad Limited, the global principal investment firm, and Formation Capital LLC, a healthcare focused private investment firm together with a group of investors, have completed the acquisition of substantially all of Extendicare Inc.’s U.S. business for US $870 million.
The transaction comprised over 160 senior care centers across 12 states, including ownership interests in the vast majority of the real estate. Operations of all facilities will be managed by five separate specialist regional tenants under long terms leases.
The terms of the transaction were secured and announced in November 2014, at which time Safanad, Formation and NorthStar Healthcare, a public, non-traded real estate investment trust (REIT), jointly sponsored the equity and debt commitments.
Commenting on the timeframe to negotiate and secure the transaction, Kamal Bahamdan, CEO and Founder of Safanad said, “This really demonstrates our differentiated business model, leveraging the strength of the Safanad balance sheet to provide capital commitments and sponsor due diligence work for the benefit of our shareholders and co-investment partners”. He added, “Increasingly we find that sophisticated investors are looking to partner with fully aligned sponsors to access compelling investment opportunities on a direct co-investment basis. Safanad is proud to be partners with Formation Capital in this pursuit.”
This is the eleventh senior care real estate acquisition comprising our seventh real estate investment partnership with Formation as part of our global strategy. We are jointly assessing a strong pipeline of healthcare transactions that will no doubt extend into the future.
Safanad is a global principal investment firm that invests in real estate, private equity and public markets. As principal investors, Safanad preserves and grows wealth through carefully selected investments with aligned industry partners. With offices in New York, Dubai and London, the firm seeks to identify global investment opportunities poised to deliver consistently attractive returns, where the firm’s capital and investment expertise support value creation. Safanad’s investment focus is primarily within the healthcare, education, financial services and retail sectors. For more information, visit www.safanad.com
About Formation Capital
Formation Capital is a leading private investment management firm focused on seniors housing and care, post-acute and health care real estate investments. Since 1999, Formation Capital has overseen the investment of over $5.5 billion of capital in seniors housing and care, post-acute services and health care real estate and has demonstrated an ability to source attractive opportunities, execute complex investment structures, align partner incentives, mitigate investment risk and generate value in real estate and operationally oriented strategies. For more information regarding Formation Capital, visit www.formationcapital.com
Extendicare is a leading North American provider of post-acute and long-term senior care services. Through its network of owned and operated health care centers, its qualified and experienced workforce of 35,900 individuals is dedicated to helping people live better through a commitment to quality service that includes skilled nursing care, rehabilitative therapies and home health care services. Extendicare’s 259 senior care centers in North America have capacity to care for approximately 28,400 residents.