Newcastle To Buy Senior Housing Assets For $1.01 Bln - Quick Facts

(RTTNews) - Newcastle Investment Corp. (NCT) announced that it has agreed to buy a 52-property portfolio of senior housing properties from certain subsidiaries of Holiday Acquisition Holdings LLC for about $1.01 billion. Newcastle expects the closing of this transaction to occur in December.

The company expects to invest about $300 million of equity to acquire the Holiday Portfolio and to fund the remainder of the purchase price with non-recourse mortgage debt.

The Holiday Portfolio includes 52 independent living properties with 5,885 units located across 24 states.

Concurrently with closing of Acquisition, the company intends to enter into two triple net master leases with affiliates of Holiday with first-year rent equal to 6.5% of the purchase price.

Upon closing, the company will have invested about $600 million of equity in senior housing assets - collectively, the "NCT Senior Housing Portfolio".

The NCT Senior Housing Portfolio, inclusive of the Holiday Acquisition and other committed transactions, includes 99 properties with 12,347 rentable units, and is targeted to generate a 17% FFO yield in 2014.