Regions West | San Francisco
Oct 1, 2008
By: Tonie Auer, Southwest Correspondent
About six weeks after concluding its offering of 14.95 million shares of common stock, Long Beach-headquartered HCP Inc. has completed the integration of its $3 billion acquisition of Slough Estates USA Inc. that closed in August 2007. The Slough portfolio is primarily located in San Diego and San Francisco, two of the three largest life science clusters in the country.
On Aug 13, CPN reported that HCP concluded its offering of 14.95 million shares of common stock, which, at a price of $33.50 per share, yielded the healthcare REIT an aggregate $500 million. HCP plans to use the proceeds from the offering to repay part of its outstanding debut under a bridge loan facility. In late May, the company placed $259 million of secured debt on 21 of its nearly 300 senior housing properties. The debt, featuring a seven-year term with a fixed interest rate of 5.83 percent, was provided by Grandbridge Real Estate Capital L.L.C. and purchased by Fannie Mae. HCP utilized net proceeds from that transaction to pay down the bridge loan and its revolving line of credit.
It was in August 2007 that HCP closed on the $2.75 billion bridge loan--as well as a $1.5 billion revolving credit facility--to finance the $2.9 billion acquisition of Slough Estates USA Inc. The transaction augmented HCP's portfolio by approximately 5.2 million square feet of life science/pharma space at 83 properties in the San Francisco Bay area and San Diego County--including Torrey Pines Science Center in La Jolla (pictured)--as well as an additional 3.8 million square feet of proposed projects in the same regions. As of the close of the second quarter, the bridge loan was paid down to $1.15 billion.
With the completion of the integration, HCP executive vice president Marshall Lees resigned to pursue more entrepreneurial opportunities. Going forward, the company’s life science platform will be led by a team of three senior vice presidents: Jon Bergschneider, Randy Rohner and Tim Schoen.
HCP’s combined life science portfolio is comprised of 107 properties representing a total of 6.6 million square feet and includes a development pipeline of approximately 3.4 million square feet.
HCP is a REIT that, together with its consolidated subsidiaries, invests primarily in real estate associated with the healthcare industry in the U.S. The company's portfolio, as of the close of the second quarter, encompassed 706 properties. The assets include 267 senior housing properties, 256 medical office properties, 51 skilled nursing facilities, 25 hospitals and 107 life science properties.
By: Tonie Auer, Southwest Correspondent
About six weeks after concluding its offering of 14.95 million shares of common stock, Long Beach-headquartered HCP Inc. has completed the integration of its $3 billion acquisition of Slough Estates USA Inc. that closed in August 2007. The Slough portfolio is primarily located in San Diego and San Francisco, two of the three largest life science clusters in the country. On Aug 13, CPN reported that HCP concluded its offering of 14.95 million shares of common stock, which, at a price of $33.50 per share, yielded the healthcare REIT an aggregate $500 million. HCP plans to use the proceeds from the offering to repay part of its outstanding debut under a bridge loan facility. In late May, the company placed $259 million of secured debt on 21 of its nearly 300 senior housing properties. The debt, featuring a seven-year term with a fixed interest rate of 5.83 percent, was provided by Grandbridge Real Estate Capital L.L.C. and purchased by Fannie Mae. HCP utilized net proceeds from that transaction to pay down the bridge loan and its revolving line of credit.
It was in August 2007 that HCP closed on the $2.75 billion bridge loan--as well as a $1.5 billion revolving credit facility--to finance the $2.9 billion acquisition of Slough Estates USA Inc. The transaction augmented HCP's portfolio by approximately 5.2 million square feet of life science/pharma space at 83 properties in the San Francisco Bay area and San Diego County--including Torrey Pines Science Center in La Jolla (pictured)--as well as an additional 3.8 million square feet of proposed projects in the same regions. As of the close of the second quarter, the bridge loan was paid down to $1.15 billion.
With the completion of the integration, HCP executive vice president Marshall Lees resigned to pursue more entrepreneurial opportunities. Going forward, the company’s life science platform will be led by a team of three senior vice presidents: Jon Bergschneider, Randy Rohner and Tim Schoen.
HCP’s combined life science portfolio is comprised of 107 properties representing a total of 6.6 million square feet and includes a development pipeline of approximately 3.4 million square feet.
HCP is a REIT that, together with its consolidated subsidiaries, invests primarily in real estate associated with the healthcare industry in the U.S. The company's portfolio, as of the close of the second quarter, encompassed 706 properties. The assets include 267 senior housing properties, 256 medical office properties, 51 skilled nursing facilities, 25 hospitals and 107 life science properties.
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