CNL Healthcare Properties II has formed a special committee to consider selling the company and other strategic alternatives, the non-traded real estate investment trust said Thursday in a filing with the Securities and Exchange Commission.
Among other alternatives being considered are a merger or other transaction with a third party or parties, the Orlando, FL-based company said.
“We remain wholly committed to the seniors housing and healthcare real estate investment sectors, but this is the appropriate decision as we approach the outside date of our primary equity offering in March 2019,” CNL Healthcare Properties II President and CEO Stephen H. Mauldin said in a related press release. “Based on our current and projected equity capital raise prospects along with a challenged environment for broker-dealers and non-traded REIT formats, we as a board unanimously concluded that identifying and pursuing opportunities to maximize value in the nearer term is in the best interest of the company and our shareholders.”
The company’s board formed the special committee Aug. 31, according to the SEC filing. Members are the company’s independent directors: J. Chandler Martin, Dianna F. Morgan and Douglas N. Benham, who is chairing the effort.
The company also has suspended its distribution reinvestment plan and stock redemption plan effective Oct. 1. Stock distributions for July, August and September will be issued around Sept. 10, after which point no further stock distributions will occur.
Since its launch in mid-2016, CNL Healthcare Properties II has invested in approximately $60 million of healthcare real estate assets, including two recently built, private-pay seniors housing communities in Florida.
