HCP announces series of mutually beneficial transactions with Brookdale

HCP announced several transactions with Brookdale Senior Living related to HCP's 15-campus continuing care retirement community (CCRC) joint venture and triple-net portfolio with Brookdale.

The transaction will allow HCP to improve operator diversification, acquire Brookdale's interest in 12 CCRC campuses and strengthen the remaining Brookdale triple-net portfolio.

Details of the CCRC transactions include:

HCP will buy out Brookdale’s 51 percent stake in 12 CCRCs with 5,641 units for $510 million, giving HCP full ownership of those communities. HCP and Brookdale agree to terminate management agreements on the 12 CCRCs and HCP to transition management from Brookdale to Life Care Services (LCS). HCP to pay a $100 million termination fee to Brookdale (approximately five times the annual management fee) and reset management fee with LCS (approximately $7 million annual savings). HCP and Brookdale to jointly market for sale to third