February 5, 2018, Seniors Hopusing Business - Invesque Inc. (TSX: HLP.U), an Indiana-based seniors housing owner and developer formerly known as Mainstreet Health Investments that trades on the Toronto Stock Exchange, has completed its previously announced acquisition of Care Investment Trust LLC.
The purchase price for the New York-based company and its portfolio of 42 seniors housing communities was $425 million. The price includes the assumption of $260.7 million in debt against the properties, as well as the issuance of 16,647,236 common shares at a fixed issuance price of $9.75 per common share to Tiptree, the seller.
As a result of the transactions, Tiptree is now Mainstreet’s largest shareholder with a 34 percent interest.
The acquisition approximately doubles Invesque’s portfolio, which now totals 84 properties comprising 8,800 beds in 19 states and one Canadian province.
Tiptree cited the greater scale and diversification of the combined portfolio as its main reason for selling off its subsidiary. It also noted that the sales price represents a 10 percent premium on its stock price, and that the transaction will reduce the company’s debt by $495 million.