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Real Estate News & Analysis: May Edition


Quality Care could acquire troubled tenant; Plymouth hits the public market

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

The REIT stuff

* Quality Care Properties Inc. is considering acquiring troubled tenant HCR ManorCare and is seeking financing commitments of up to $500 million from ManorCare creditors. The nursing home operator failed to make the full June payment due under its April agreement with Quality Care. If Quality Care does acquire ManorCare, it would likely lose its status as a real estate investment trust.

* Plymouth Industrial REIT Inc. is poised to hit the NYSE MKT on June 9 after pricing its IPO, which should be finalized June 14. The company priced the IPO at $19.00 per share, the low end of its projected range, for roughly $55.1 million in estimated gross proceeds. Plymouth revived its IPO after calling off its initial plans to go public.

Bidding wars

* Forestar Group Inc. could be the subject of a potential bidding war after the company's board determined that homebuilder D.R. Horton Inc.'s unsolicited stake buyout offer might be superior to Forestar's merger deal with Starwood Capital Group. D.R. Horton is proposing to buy 75% of Forestar's outstanding common shares for $16.25 per share, which is 14% higher than the cash purchase price in the Starwood deal. Forestar and Starwood are also facing a shareholder lawsuit over their proposed merger.

* NorthWest Healthcare Properties REIT further increased its stake in Generation Healthcare REIT to 91.45% at market close June 7, kicking off the Canadian REIT's mandatory buyout of its Australian peer. NorthWest launched its takeover bid for Generation Healthcare in April and raised the offer price in early May.

Tie ups

* Phillips Edison & Co. Ltd. spinoff PECO Real Estate Partners joined forces with Almanac Realty Investors LLC to create a vertically integrated retail real estate company called PREP Property Group. PREP is getting a capital infusion of up to $300.0 million from Almanac.

* Fresh off its acquisition of two California office buildings from Blackstone Group LP, a joint venture between Douglas Emmett Inc. and Qatar Investment Authority reportedly purchased the 9665 Wilshire Ave. building in Los Angeles for roughly $188 million from the private equity giant. The joint venture was reported to be considering buying a two-building office complex in Santa Monica, Calif., also from Blackstone.

Cheaper by the dozen

* Colony Starwood Homes is set to buy a single-family rental home portfolio comprising 3,106 units in a deal valued at roughly $815 million. The company will use proceeds from a common stock offering to help fund the acquisition, which is slated for a third-quarter close.

* Summit Hotel Properties Inc. agreed to acquire a five-hotel portfolio from Xenia Hotels & Resorts Inc. The transaction, which should close in the next 30 days, is valued at $163 million.

* Nexus Real Estate Investment Trust signed a roughly C$147 million deal to acquire a Canadian property portfolio, which it will fund with net proceeds from a bought-deal equity offering and a private placement. The portfolio includes 25 retail, office and industrial properties in Quebec and one office asset in New Brunswick.

* Slate Retail REIT is acquiring a five-property portfolio in Florida and Pennsylvania for C$105 million. The deal is set to close in the third quarter.

REITWeek 2017

S&P Global Market Intelligence was on the ground in New York to attend a host of presentations and gather commentary during NAREIT's REITWeek.

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