(Bloomberg)—Healthcare Realty Trust Inc. is buying Healthcare Trust of America Inc., bringing together the two largest medical-office building owners in a single transaction with an enterprise value of approximately $17.6 billion.
According to a statement Monday, Healthcare Trust of America shareholders will receive $35.08 per share, including a special dividend. Both firms said the new company would have an equity market capitalization of approximately $11.6 billion.
Shares of Healthcare Realty Trust fell 9.7% to $26.50. Healthcare Trust of America was down 2.3% at $30.33 as of 9:44 a.m. in New York.
Healthcare Realty’s management team will lead the combined company, with Todd Meredith as Chief Executive Officer and Chris Douglas as Chief Financial Officer. The new company will operate under the name Healthcare Realty and will be based in Nashville.
“We are confident that all shareholders will benefit from the company’s expanded national footprint from HR’s Seattle portfolio to HTA’s Boston portfolio,” Meredith said in the statement.
According to the statement, the combined real estate investment trust will have 727 properties totaling 44 million square feet (4.1 million square meters) and will have the largest portfolio of properties in or near hospital complexes.
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