Irvine-based Griffin-American Healthcare’s REIT III Inc. and REIT IV Inc. said they will merge to create a combined company with a gross investment value of $4.2 billion in healthcare real estate assets.
The company is also buying American Healthcare Investors, which is the co-sponsor and adviser for both REITs. American Healthcare REIT will be the name of the new venture, which will become the world’s 11th largest healthcare-focused real estate investment trust.
The combined company will own an approximately 19 million-square-foot international portfolio of healthcare real estate comprised of 314 medical office buildings, senior housing communities, skilled nursing facilities and other real estate-related investments.
More than 100 employees of AHI, including its three founders, will become employees of the newly combined company.
Jeff Hanson will be named executive chairman of American Healthcare REIT, Danny Prosky will be named president and chief executive officer, and Mathieu Streiff will be named chief operating officer.
“We believe that merging these complementary portfolios together, along with the sponsor company, will create a portfolio with meaningful scale and diversification, as well as drive significant operating efficiencies and earnings accretion for stockholders, well-positioning the company for future growth that should be rewarded in the public markets,” said Hanson, chairman and chief executive officer of both REITs.
The proposed transactions are expected to close in the fourth quarter.