Diversified Healthcare Trust Announces Sale of Additional 10% Equity Interest in Life Science Property Located in Boston Seaport District
June 29, 2022 at 16:15 PM EDT
DHC Receives Proceeds of Approximately $108 Million
Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has sold an additional 10% equity interest in the two building life science complex located at 11 Fan Pier and 50 Northern Avenue in Boston, MA. DHC sold the interest to an existing joint venture partner for a purchase price of approximately $108 million. The purchasing partner now owns a 45% interest in the joint venture, another partner continues to own a 45% equity interest, and DHC owns the remaining 10% equity interest. The purchase price for the 10% equity interest is based on a property valuation of $1.7 billion, less the $620 million of existing secured debt on the property.
The property was acquired by DHC in May 2014 for $1.1 billion and consists of two 15-story, class A LEED® Gold Certified life science buildings located in Boston’s Seaport District. The two buildings are approximately 95% leased to Vertex Pharmaceuticals, Inc., and include 1.1 million rentable square feet of lab, corporate office and street level retail space.
DHC expects to use the proceeds from this transaction to fund capital expenditures, to reduce outstanding indebtedness and for other general business purposes.
Diversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust (REIT) that owns approximately $6.8 billion of high-quality healthcare properties located in 36 states and Washington, D.C. DHC seeks diversification across the health services spectrum: by care delivery and practice type, by scientific research disciplines and by property type and location. DHC’s life science and medical office portfolio includes over 100 properties totaling approximately nine million square feet and is occupied by almost 500 tenants. DHC’s senior living portfolio contains over 27,500 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. To learn more about DHC, visit www.dhcreit.com.
The joint venture and DHC are managed by RMR. RMR is responsible for providing all aspects of business and property management services for nearly 1,400 properties with approximately 116 million square feet of commercial office, industrial, medical office, life science and retail space.
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This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever DHC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, DHC is making forward-looking statements. These forward-looking statements are based upon DHC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by DHC’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond DHC's control. For example:
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A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
Michael Kodesch, Director, Investor Relations