{"id":1004687926,"date":"2023-10-30T07:25:43","date_gmt":"2023-10-30T15:25:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004687926"},"modified":"2023-10-31T09:52:12","modified_gmt":"2023-10-31T17:52:12","slug":"healthpeak-properties-physicians-realty-trust-enter-21b-merger","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/healthpeak-properties-physicians-realty-trust-enter-21b-merger\/","title":{"rendered":"Healthpeak Properties, Physicians Realty Trust Strike $21B Merger Deal"},"content":{"rendered":"<div id=\"attachment_1004556618\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004556618\" data-attachment-id=\"1004556618\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/healthpeak-to-build-393m-bay-area-campus\/healthpeak-vantage-rendering-1\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg\" data-orig-size=\"626,470\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Healthpeak Properties, Inc.&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;Architect rendering of Vantage&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;Healthpeak Vantage Rendering 1&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Healthpeak Vantage Rendering 1\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;The upcoming Vantage campus. Rendering courtesy of Healthpeak Properties.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg?w=626\" class=\"wp-image-1004556618 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg?w=300\" alt=\"\" width=\"300\" height=\"225\" data-wp-editing=\"1\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg 626w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/11\/Healthpeak_Vantage_Rendering_1-e1635936783709.jpg?resize=300,225 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004556618\" class=\"wp-caption-text\">The combined company will operate a 52 million-square-foot portfolio, including Vantage campus at <span class=\"ui-provider ee ced brj cee cef ceg ceh cei cej cek cel cem cen ceo cep ceq cer ces cet ceu cev cew cex cey cez cfa cfb cfc cfd cfe cff cfg cfh cfi cfj\" dir=\"ltr\">494 Forbes Blvd.<\/span> in San Francisco. <em>Image courtesy of Healthpeak Properties<\/em><\/p><\/div>\n<p><strong>Healthpeak Properties <\/strong>and <strong>Physicians Realty Trust <\/strong>have entered into a definitive agreement to combine in an all-stock merger valued at $21 billion.<\/p>\n<p>The new company will operate a portfolio of 52 million square feet of health-care facilities, of which 40 million square feet represent outpatient properties in Dallas, Houston, Nashville, Phoenix and Denver. The partners expect to generate run-rate synergies of more than $40 million by the end of the first year, and $60 million by the end of the second year.<\/p>\n<p>Healthpeak will also assume Physicians Realty Trust\u2019s existing debt and will enter into a new five-year, $500 million loan at a rate of SOFR plus 85 basis points. The tax-free transaction is expected to close in the first half of 2024.<\/p>\n<h2>Transaction details<\/h2>\n<p>Under the agreement, each Physicians Realty Trust common share will be converted into 0.674 of a newly issued Healthpeak common share. Healthpeak and Physicians Realty Trust shareholders will own 77 percent and 23 percent of the combined company, respectively. The new firm will pay an annualized dividend of $1.20 per share.<\/p>\n<p><strong>Barclays <\/strong>and <strong>Morgan Stanley &amp; Co. <\/strong>are Healthpeak\u2019s lead financial advisors, along with <strong>J.P. Morgan<\/strong>, <strong>Mizuho Securities USA<\/strong>, <strong>RBC Capital Markets <\/strong>and <strong>Wells Fargo <\/strong>serving as additional advisors. <strong>Latham &amp; Watkins LLP <\/strong>is acting as legal advisor for the firm. Physicians Realty Trust worked with <strong>BofA Securities <\/strong>and <strong>KeyBanc Capital Markets <\/strong>as lead financial advisors, along with <strong>BMO Capital Markets Corp<\/strong>. <strong>Baker McKenzie<\/strong> is acting as legal advisor.<\/p>\n<p>The medical office market is returning to more stable fundamentals, after having weathered recent economic headwinds, <a href=\"https:\/\/www.commercialsearch.com\/news\/mob-sector-remains-stable-attractive\/\">a recent IPA report on the matter<\/a> shows. Medical office projects only represent 10.7 percent of the overall national office pipeline. The main challenge the sector&#8217;s expansion is facing is the health-care labor shortage, rather than supply-related obstacles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transaction is expected to close in the first half of 2024.<\/p>\n","protected":false},"author":3120,"featured_media":1004556618,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,21754,23891,21742],"tags":[32934,35564,48302,43145,49801,32774,37699,33277],"class_list":["post-1004687926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-medical-office","category-national","category-latest","tag-barclays","tag-bmo-capital-markets-corporation","tag-healthpeak-properties","tag-j-p-morgan","tag-latham-watkins","tag-morgan-stanley","tag-physicians-realty-trust","tag-wells-fargo"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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