Kayne Anderson Real Estate Advisors, the real estate private equity arm of Kayne Anderson Capital Advisors, has completed the previously reported merger agreement under which affiliates of KAREA will acquire Sentio Healthcare Properties by way of merger.
KAREA will acquire all of the outstanding shares of Sentio in an all-cash transaction based on an estimated total asset value of $825 million.
Sentio Healthcare Properties is a public, nonlisted REIT that invested entirely in health-care real estate. Its portfolio includes 34 properties in 16 states, mostly on the East Coast, in the Midwest, in Texas and the Southeast, that focus primarily on the private-pay senior housing sector, nursing facilities, medical office buildings and specialty medical properties.
Other parties involved in the transaction include Kohlberg Kravis Roberts & Co. and Sentio Healthcare Properties’ external adviser, Sentio Investments.
For the 11th quarter in a row, the U.S. health services industry witnessed more than 200 deals, but did decrease over the prior year and prior quarter by 15 percent and 18 percent, respectively, according to PwC. However, despite these declines, the quarter experienced a significant increase in deal value. The quarter’s $49.6 billion total represents an increase of 201 percent on second quarter 2016 and 514 percent over first quarter 2017 and is the highest level seen since third quarter 2015.
Long-term care remained the most active subsector in volume terms, with 75 deals accounting for 34 percent of all second quarter 2017 deals. Other services, which saw six megadeals, was the largest subsector in value terms, reaching $35.2 billion and 71 percent share of total transaction value.
