The transaction is part of a larger deal to sell its entire skilled nursing business to BM Eagle Holdings for $700 million. BM Eagle Holdings is a joint venture led by affiliates of BlueMountain Capital Management. Kindred’s skilled nursing business portfolio includes 89 nursing centers and seven assisted living facilities in 18 states.
The $108 million transaction includes 12 skilled nursing facilities and four assisted living facilities.
To date, Kindred has sold 66 skilled nursing facilities and four assisted living facilities to BlueMountain and affiliated buyers for $627 million.
Thirty-six of the 89 skilled nursing facilities in Kindred’s portfolio were or continue to be leased from Chicago-based healthcare real estate investment firm Ventas. Kindred executed its option to acquire the real estate of the Ventas properties for $700 million and convey the purchased real estate to BlueMountain or another designee. To date, Kindred has paid Ventas $571 million for the properties.
Seven Ventas properties were included in the $108 million sale. Kindred paid Ventas $82.5 million for those properties.
Kindred signed a definitive agreement to divest its skilled nursing business to BlueMountain in July.
In addition to partially closing the BlueMountain sale, Kindred also transferred its interest in two skilled nursing centers to parties unrelated to BlueMountain for $400,000.
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