HCP Inc.has agreed to inject its stakes in RIDEA II into an unconsolidated joint venturein which it owns a 50.1% stake.
HCP currently owns an 80% stake in RIDEA II, which comprisesconsolidated joint venture entities established in August 2014. The entities ownand operate seniors-housing assets in a RIDEA structure.
The company will receive cash proceeds of $109 million from theunconsolidated joint venture and a note receivable amounting to $636 million.HCP will retain a roughly 40% beneficial interest in RIDEA II.
As it will not direct the primary activities of the venture,HCP will deconsolidate the net assets of RIDEA II upon completion of the deal. Membersare expected to recapitalize RIDEA II, at which time HCP will receive cash proceedsin payment against the note.
Pending regulatory and third-party approvals and other customaryconditions, the transactions are anticipated to close in 2016, according to a quarterlyfiling. An investor group headed by Columbia Pacific Advisors LLC ownsthe remaining 49.9% stake in the unconsolidated joint venture.
The company also disclosed that it sold a life science facilityand a medical office building in April for $90 million.
HCP recently announced that it plans to spin off its HCR ManorCare portfolio into an independentpublicly traded REIT.