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Omega Healthcare Investors enters joint venture for 64-property acquisition

Omega Healthcare Investors said Wednesday it has invested $50 million in a joint venture with a private investment firm to make a $1.1 billion acquisition of 64 facilities.

The venture, Second Spring Healthcare Investments, will be 85 percent owned by affiliates of New York-based Lindsay Goldberg, which manages about $13 billion in equity capital.

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"We are excited to renew our partnership with Lindsay Goldberg and strengthen our commitment to Genesis, the nations' leading provider of post-acute care," said Taylor Pickett, CEO of Omega, a Hunt Valley-based real estate investment trust. "The joint venture structure allows Lindsay Goldberg to deploy substantial capital into the skilled nursing industry alongside an experienced REIT management team."

The 64 facilities, acquired from Welltower, another health focused real estate investment trust, will be leased to Genesis Healthcare subsidiaries and are expected to yield $103.9 million in annual rent in the first year.

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Genesis is already one of the biggest operators of facilities for Omega, which owns about 1,000 properties in 42 states and the United Kingdom. A Lindsay Goldberg affiliate was a major investor in Aviv REIT, which Omega acquired in 2015.

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