TOLEDO, Ohio--(BUSINESS WIRE)--May 4, 2015-- Health Care REIT, Inc. (NYSE:HCN) today announced it has entered into a definitive agreement to sell its 49% interest in seven life science buildings located at Massachusetts Institute of Technology’s University Park, a mixed-use life science campus, in Cambridge, MA. Forest City Enterprises, Inc. (NYSE:FCEA and FCEB) will redeem HCN’s interest for $573.5 million, including HCN’s pro rata share of property-level debt of $174 million. The purchase price represents a projected 5% cap rate based on forward 12 months net operating income.

“This was a terrific investment for HCN, achieving an unlevered internal rate of return of approximately 15%. Forest City has been an excellent partner, and we appreciate their role in our successful partnership over the last five years,” said Tom DeRosa, CEO of HCN. “The proceeds from this sale will be reinvested accretively in our core business; owning, developing and managing the highest quality seniors housing, post-acute and outpatient medical real estate in the US, UK and Canada."

The two companies entered into a 51/49 equity joint venture for the properties in February 2010. At that time, HCN invested $327 million, including assumed debt, for its 49% interest.

The disposition of the life science portfolio is incremental to HCN’s most recently disclosed 2015 disposition guidance of $400 million and is expected to be completed during the second half of 2015. Additional information will be provided in HCN’s earnings release and related conference call scheduled for Friday, May 8, 2015.

About Health Care REIT, Inc.

HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. The company also provides an extensive array of property management and development services. As of December 31, 2014, the company’s broadly diversified portfolio consisted of 1,328 properties in 46 states, the United Kingdom and Canada.

Forward-Looking Statements

This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the company’s actual results to differ materially from the company’s expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, the satisfaction of closing conditions to the transaction; the respective parties’ performance of their obligations under the transactions agreements; the failure of the closing to occur as and when anticipated; unanticipated difficulties and/or expenditures relating to the transaction; risks related to non-compliance with government regulations and new legislation or regulatory developments; changes in financing terms; and other factors affecting the execution of the transaction. Finally, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

Source: Health Care REIT, Inc.

Health Care REIT, Inc.
Scott Estes, 419-247-2800
Scott Brinker, 419-247-2800