CNL Lifestyle Properties Inc., a publicly registered non-traded real estate investment trust that invests in lifestyle-related properties, sold the final property in its senior housing portfolio, Pacifica Senior Living in Wilmington, North Carolina., for approximately $27.4 million. The buyer, Senior Housing Properties Trust (NYSE: SNH), entered into an agreement in December 2014 to purchase the REIT’s entire 38-property portfolio for approximately $790 million.
The aggregate net cash to the company from the sale of the portfolio is approximately $488.6 million, after the repayment or assumption of approximately $286.4 million of debt and payment of expenses. In June 2015, approximately $318.3 million of the net proceeds from the sale of the portfolio were used to call the company’s senior unsecured notes at 103.625 percent of par value, and $176.3 million was used to retire other debt. While the REIT has not yet determined how it will use the balance of the net proceeds from the sale, possible uses include a special distribution to stockholders before the end of 2015, strategic capital expenditures to enhance certain remaining properties, and other corporate purposes.
CNL Lifestyle Properties Inc. invests in lifestyle properties in the United States that are primarily leased on a long-term, triple-net or gross basis. As of June 30, 2015, the company owned 66 lifestyle properties directly and indirectly within the following asset classes: ski and mountain lifestyle, senior housing, attractions, marinas and other lifestyle properties. Seven of these 66 properties were owned through one unconsolidated joint venture and three were located in Canada.
CNL Financial Group (CNL), the sponsor of CNL Lifestyle Properties, is a private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $31 billion in assets.