Healthcare Realty Trust Inc. announced a strategic partnership with KKR & Co. Inc. on Monday. The joint venture will focus on co-owning and investing in premium medical outpatient buildings.
Healthcare Realty forecasts gaining around $300 million from the initial portfolio contribution into the joint venture. The company will collaborate with KKR on investigating further acquisitions, including the potential addition of more Healthcare Realty properties.
Under the agreement's terms, Healthcare Realty will transfer 12 of its current properties to the joint venture with an estimated value of $382.5 million, showcasing a capitalization rate of about 6.6%. KKR will then contribute equity equal to 80% of the properties' value into the joint venture.
Healthcare Realty will maintain a 20% stake and manage the venture, in addition to supervising the daily operations and leasing of the properties.
KKR committed to providing up to $600 million to the joint venture. This sum will support the pursuit of further acquisitions or contributions of high-end, stabilized assets that match its long-term capital base.
The 12 properties that will be contributed to the joint venture collectively cover an area of 762,399 square feet and have an occupancy rate of 98%. The formal handing over is expected to take place in May and June, pending the satisfaction of standard closing conditions.
