Health Care Property to Acquire CNL

Health Care Property Investors Inc. said Tuesday that it had agreed to acquire CNL Retirement Properties Inc. for $3.6 billion to create the largest healthcare real estate investment trust in the U.S.

Long Beach-based Health Care Property said it also would assume or refinance $1.6 billion of CNL’s outstanding debt.

Health Care Property would pay CNL shareholders $13.50 a share: 82% cash and 18% stock. CNL shareholders would receive $11.13 in cash and 0.0865 of a share in Health Care Property.

Health Care Property said that after the deal it would own the largest portfolio of independent and assisted-living communities, healthcare facilities and medical office buildings in the U.S.

The deal is expected to close by the end of the third quarter.

The transaction has been approved by the boards of Health Care Property and CNL and by a special committee of independent directors of CNL. The deal is subject to approval by CNL shareholders.

Health Care Property shares fell 68 cents to $26.17.