(Reuters) - HCP Inc (N:HCP), a real estate investment trust (REIT) focused on healthcare, said it would spin off its skilled nursing and assisted living properties into a publicly-traded REIT.
HCP said the spinoff would allow it to focus on its core businesses - senior housing, life science properties and medical offices - and give it flexibility to invest in assets with limited dependency on government reimbursement.
Skilled nursing facilities provide long-term care for patients who have difficulty in regular day-to-day activities. These services are covered under Medicare and Medicaid programs.
After the spinoff, HCP expects to have more than 860 properties, generating annual portfolio income of about $1.4 billion, the company said on Monday.
The new REIT will hold properties from HCP's HCR ManorCare unit and some other nursing facilities. It is expected to have a portfolio of more than 320 properties with estimated annual rent of about $485 million.
Mark Ordan, who has joined HCP as senior adviser, will be the chief executive of the new company.
Barclays (LON:BARC) and Morgan Stanley (NYSE:MS) are HCP's financial advisers for the spinoff. Paul, Weiss, Rifkind, Wharton & Garrison and Skadden, Arps, Slate, Meagher & Flom are its legal advisers.