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NorthStar Acquires Griffin-American Health Care REIT In $4B Deal

Transaction Eclipses Ventas/ARC Deal As Largest Health Care Property Transaction In Three Years
August 5, 2014
After weeks of Wall Street rumors, NorthStar Realty Finance Corp. (NYSE: NRF) today announced an agreement to buy Griffin-American Healthcare REIT II in a stock-and-cash transaction valued at $4 billion.

The transaction pushes NorthStar further into the realm of equity REITs as it acquires medical-office buildings and senior housing in the biggest health-care property deal in three years, the companies said today in a joint statement.

The transaction is even larger than the announcement than June's announcement by Ventas Inc. (NYSE: VTR) that it will buy American Realty Capital Healthcare Trust Inc. for $2.6 billion. New York-based NorthStar earlier this year acquired $1.05 billion of senior housing and skilled-nursing facilities.

Griffin-American shareholders will receive $11.50 a share, including$7.75 in cash and the rest in NorthStar common stock, and NorthStar will assume about $600 million of debt.

NorthStar, which began as a commercial mortgage REIT, now estimates that 75% of its assets will be owned real estate. Earlier this year, the New York City based company acquired $1.05 billion of skilled-nursing and seniors housing facilities.

Irvine, CA-based Griffin-American Healthcare REIT II launched nearly five years ago, seeking to build a premium portfolio of diversified health care real estate, said Jeff Hanson, chairman and CEO of Griffin-American.

"With this transaction, we have executed on our strategy, validating our investment thesis and delivering a strong result for stockholders," Hanson said.

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