Senior Housing Properties Trust expects to close on a nine-community portfolio for $478 million. It will close on eight of the properties in a $379 million transaction and then purchase the ninth property, in New York, after regulatory and third-party approvals are met. The portfolio is operated by Vi as Classic Residence, formerly known as Classic Residence by Hyatt.
Home Properties CEO and President Ed Pettinella says the firm is ready to begin ramping up its development program. The REIT has enjoyed strong quarterly earnings for the past two years. "We'll have probably one or two projects over the next year or so," he said. "I think for us, like many others, it will be a supplemental stream of income, versus the acquisitions that we buy for the core portfolio."
This year, basic supply and demand factors swung back in favor of real estate owners and operations, observes Paul Adornato, managing director of research for BMO Capital Markets. This was an important development because "even though there was very little new growth, the lack of new supply kept the overall operating dynamics reasonably healthy for most sectors."
A draft law expected to be proposed by the U.K. Treasury today would loosen regulations on ownership and stock-exchange listings for real estate investment trusts. The change is expected to prompt many real estate funds to elect REIT status.