Healthcare Realty Trust Incorporated (NYSE:HR) has announced a significant expansion of its joint venture with KKR, contributing an additional $118 million worth of properties.
This move has generated approximately $94 million in proceeds for Healthcare Realty, bringing the total value of the joint venture to nearly $500 million.
The collaboration between Healthcare Realty and KKR continues to grow, with both companies exploring further acquisitions and the potential inclusion of more Healthcare Realty properties in the venture.
In addition to the joint venture, Healthcare Realty disclosed in July that it has additional asset sales and joint venture transactions either under contract or in the letter of intent (LOI) stage.
These transactions are expected to push total proceeds to over $1 billion, with the majority anticipated to close in the third quarter of 2024.
The funds from these transactions are expected to be used for leverage-neutral share repurchases and to fulfill existing capital commitments.
Todd Meredith, President and CEO of Healthcare Realty, commented on the progress, stating, "The expansion of our joint venture with KKR shows continued progress towards our goal of generating more than $1 billion of proceeds from asset sale and JV transactions. Our existing joint venture relationships are providing us with proceeds in the current market environment and alternative sources of growth capital over the longer term."
This strategic expansion underscores Healthcare Realty’s commitment to unlocking value from its portfolio while navigating the current market landscape through collaborative ventures and strategic asset sales.