The board of CNL Healthcare Properties Inc., a publicly registered non-traded real estate investment trust, has appointed a special committee of its independent directors to evaluate strategic alternatives in order to provide liquidity to shareholders. The company also named financial advisors to assist in the process.
The special committee has engaged the real estate investment banking groups of HFF Securities L.P. and KeyBanc Capital Markets Inc. to act as strategic financial advisors in exploring and executing potential liquidity alternatives.
CNL Healthcare Properties’ multi-billion-dollar real estate portfolio spans 34 states and includes 72 seniors housing communities, 53 medical office buildings, 12 post-acute care facilities and five acute-care assets, as of May 2018. The REIT launched in 2011 and made its first investment in early 2012.
“We welcome the expertise of HFF and KeyBanc as we continue our focused work to evaluate strategic alternatives to provide liquidity to our shareholders,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “CNL Healthcare Properties reflects the CNL platform’s extensive healthcare real estate expertise and capabilities that have enabled us to craft an attractive and sizeable portfolio of high-performing medical and seniors housing properties.”
Strategic alternatives may include listing the company’s common stock on a national exchange; selling the company or its assets and distributing the net proceeds to shareholders; or merging with a third party that would provide shareholders with cash and/or securities of a publicly traded company.
CNL Healthcare Properties focuses on acquiring properties in the seniors housing and healthcare sectors, including stabilized, value-add and development assets, as well as other income-producing properties, real-estate related securities and loans. The company closed its offering in September 2015 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.