HCP to acquire 133 senior housing communities

LONG BEACH, Calif. -- HCP Inc. is buying 133 senior housing communities for $1.73 billion from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group L.P.

The deal announced Tuesday includes assisted living, independent living, memory care and skilled nursing facilities in 29 states.

HCP, based in Long Beach, Calif., is a real estate investment trust that invests primarily in healthcare properties.

Emeritus will continue to operate the communities and has committed to spending an additional $30 million to improve them. The company is the nation's largest assisted-living and memory-care center operator.

Emeritus is also buying nine remaining properties from the joint venture for $62 million, which includes $10 million in cash and a $52 million four-year loan from HCP.

The joint venture originally bought the properties in 2010 out of bankruptcy and invested $42 million to improve them.

HCP said the deal will immediately add to its results and significantly expands its senior housing portfolio.

The real estate investment trust also said Tuesday that it plans sell 22 million shares of its stock in an offering to fund a portion of the deal. Goldman Sachs & Co. is the sole underwriter for the deal. HCP has given Goldman Sachs the option to buy up to 3.3 million additional shares for overallotments.

The deals are expected to close by the end of the fourth quarter of 2012.

HCP's shares slipped 92 cents, or 2 percent, to $45 in after-hours trading following the announcement.

Emeritus rose 57 cents after hours to $23.50. Blackstone was unchanged.