Shareholders of CNL Healthcare Properties II Inc., a publicly registered non-traded real estate investment trust, approved the company’s plan of liquidation and dissolution at the annual meeting of stockholders on Tuesday.
The plan of dissolution will allow the company to sell its assets, distribute the net proceeds to stockholders as liquidating distributions, wind-up operations and dissolve the company.
CNL Healthcare II closed its primary offering on October 1, 2018 after raising approximately $51.2 million and appointed a special committee to explore strategic alternatives.
The company had a net asset value per share of $9.92 as of December 31, 2018. The company estimates that its net proceeds from liquidation will range between approximately $8.80 and $9.83 per share. Shares were originally sold for $10.00 each.
Nearly 2.9 million shares voted for the dissolution proposal, approximately 81,200 voted against, and nearly 41,600 abstained. There were roughly 1.1 million broker non-votes counted.
As of June 30, 2019, CNL Healthcare II’s portfolio consists of two senior housing properties that are both located in Florida: Summer Vista and The Crossings at Riverview.
In May 2019, the company sold the Mid-America Surgery Institute located in Overland Park, Kansas for approximately $15.4 million. The property was originally purchased in December 2017 for $14 million, and after paying closing costs and mortgage debt, the net sales proceeds were approximately $9.5 million.
The company did not make a special distribution following the sale, but instead, used the proceeds to pay down secured debt for one of the two seniors housing assets remaining in its portfolio.
CNL Healthcare Properties II commenced its $1.75 billion initial public offering in March 2016 and raised approximately $50 million in investor equity before closing the offering in October 2018. The company oversees a portfolio of two senior housing properties with a total purchase price of approximately $45.7 million.