Healthcare Trustof America Inc. kicked off a public offering of 5.2 million common sharesand detailed its recently completed and planned property acquisitions.
The company said April 5 that the offering's underwriters willalso be granted a 30-day option to buy up to 780,000 additional shares. Based onthe company's April 5 closing price of $29.52 per share, gross proceeds, includingthe full exercise of the additional-share option, are estimated to be about $176.5million.
Separately, the company said that during the first quarter, itacquired medical office buildings in three separate transactions amounting to $163million, with an overall unlevered average yield of between 6.0% and 6.5% for thefirst year.
The properties include a 287,000-square-foot MOB in New Haven,Conn.; a seven-building portfolio mainly in Houston and El Paso, Texas; and a 22,000-square-footMOB in Charleston, S.C. The 99%-occupied New Haven asset was acquired for about$74 million in January, while the fully occupied Charleston facility was boughtfor $6 million. The roughly 483,000-square-foot Texas portfolio, which was about86% occupied at closing, was purchased for an estimated $83 million.
Healthcare Trust also inked roughly $210 million deals to buyMOBs with a gross leasable area of about 668,000 square feet in its key market areasin New England and the Midwest. The company said the assets are either on-campusor in community-core sites and are affiliated with major health systems in theirrespective markets, also with a first-year unlevered average yield of 6.0% to 6.5%.It expects to close on its purchase of these assets primarily during the secondquarter.
Further, the company said it has signed exclusive nonbindingletters of intent to buy an undisclosed number of additional properties.
The net proceeds from the offering will go toward general corporatepurposes, which may include working capital, partial funding for pending real estateacquisitions and debt repayment.
The offering's completion is contingent on customary closingconditions.
Wells Fargo Securities and J.P. Morgan are serving as the offering'sjoint book-running managers.