CA Health and Science Trust announces USD245m partnership with Davidson Kempner and Monarch Alternative Capital
CA Health and Science Trust, (CAHST), a newly formed and externally managed private real estate investment trust (REIT) focused on the acquisition and development of value-add and core-plus medical office and life science facilities across the US, has secured an investment of up to USD245 million from partners Davidson Kempner Capital Management LP (Davidson Kempner), Monarch Alternative Capital LP (Monarch) and CA Ventures.
CAHST intends to use the proceeds from the investment for the acquisition, development and renovation of medical office and life science buildings and for general corporate purposes and working capital. CAHST is externally managed by CAHST Management LLC, a global vertically integrated real estate investment management company affiliated with CA Ventures.
“The investment, backed by asset management firms Davidson Kempner and Monarch, is a direct reflection of the CAHST team’s extensive industry expertise and execution reliability,” says Tom Scott, board chairman for CA Health and Science Trust and chief executive officer of CA Ventures. “There could not be a platform better equipped to capitalise on the enormous opportunity existing in the healthcare real estate sector.”
In connection with the closing of the investment, CAHST has announced the closing of two acquisitions worth more than USD50 million combined to acquire medical office buildings in Naperville, Illinois and Gilbert, Arizona. The transactions account for a total of 131,049 square feet across Illinois and Arizona – two US markets experiencing strong demand for medical office buildings driven by compelling macroeconomic tailwinds fuelling demand for healthcare real estate.
“I am incredibly proud of the CAHST team and grateful for our partners, who have allowed us to hit the ground running with more than USD50 million in initial transactions to accompany the official closing of the private offering – momentous accomplishments that allow us to capitalise on the strong demand for outpatient healthcare real estate and the continued growth and success we have experienced in the medical office and life science space,” says Russell Brenner, president of CA Health and Science Trust. “CAHST’s successful launch is a sign of the compelling opportunities ahead of us as we continue to acquire, build and renovate a national portfolio of healthcare real estate assets for our tenants, providing them with premier facilities for the delivery of healthcare services and medical research.”
“The closing of the Naperville and Gilbert properties are the result of our veteran team’s extensive medical office sector experience and industry relationships to source attractive investment opportunities for the growing CAHST portfolio,” says Jesse Ostrow, chief investment officer of CA Health and Science Trust. “This significant milestone marks an exciting inflection point in our medical office and life sciences strategy and will help us deliver significant value to both tenants and investors.”
The offering and sale of securities pursuant to the investment was conducted pursuant to an exemption under the Securities Act of 1933, as amended (the Securities Act), or applicable state securities laws, and have been sold in a private placement pursuant to Regulation D under the Securities Act. The sale of securities pursuant to the investment has not been registered under the Securities Act and may not be sold in the US absent registration or an exemption from the registration requirements of the Securities Act.