Significant Sila Realty Trust Tenant Files for Bankruptcy

Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, announced that GenesisCare USA Inc., one of the REIT’s tenants, filed for Chapter 11 bankruptcy protection.

GenesisCare operates, among other facilities throughout the U.S. and internationally, 17 radiation oncology and related use properties that are owned by Sila.

According to the publicly filed bankruptcy documents, GenesisCare is seeking U.S. bankruptcy court approval to access already sourced debtor-in-possession financing to continue to operate its business in the near term, rescue the global cost base of GenesisCare, run a sale process for the U.S. arm of the GenesisCare business and maximize the value of GenesisCare.

GenesisCare has stated that it has a plan for reorganization and describes a general timeframe which includes a sale of the U.S. business of GenesisCare within a six-month period.

In connection with its bankruptcy filings on June 1, 2023, GenesisCare says the company is seeking U.S. bankruptcy court approval to reject certain unexpired real property leases. The lease obligations with Sila have not been included in any motions GenesisCare has filed, and Sila reports that GenesisCare has met its lease payment obligations due to the company through May 2023.

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