HCN To Sell Life Science Portfolio Interest For $573.5 Mln

(RTTNews) - Health Care REIT, Inc. (HCN) said Monday that it has agreed 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. (FCEA , FCEB) will redeem Health Care REIT's interest for $573.5 million, including Health Care REIT'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.

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

The disposition of the life science portfolio is incremental to Health Care REIT's most recently disclosed 2015 disposition guidance of $400 million and is expected to be completed during the second half of 2015.