Blue Owl Strengthens Healthcare Footprint With $2.4B Purchase of Sila Realty
Blue Owl Capital Inc. has agreed to acquire healthcare-focused REIT, Sila Realty Trust, Inc., for roughly $2.4 billion.
The definitive merger deal at $30.38 per share represents a 19 percent premium over Sila's last stock trading close price before the announcement on Monday. It's also a 25.6 percent premium to the average trading price over the past 30 days.
As of March 31, the REIT had a portfolio of 137 healthcare properties, with a focus on net lease. This includes 86 medical outpatient buildings, 25 inpatient rehab facilities and 26 surgical and specialty facilities.
"Michael [A. Seton] (president and CEO) and the Sila team have curated a highly diversified collection of critically important healthcare assets across the continuum of care, underpinned by strong tenant fundamentals, long-term triple-net leases, and robust rent coverage," Marc Zahr, co-president and global head of real assets at Blue Owl, said in a statement.
"This transaction provides us with a compelling opportunity to acquire a scaled portfolio with durable cash flows and attractive long-term growth characteristics, while further expanding Blue Owl managed funds' exposure to an asset class and sector we view as both resilient and essential given its critical role in both society and the economy."
Sila's locations are located across the country, with a major presence in Texas and Florida.
Notably, MOBs continue to thrive in the national healthcare sector, as highlighted in a Colliers report. Since 2021, the top 50 U.S. markets have seen demand exceed new MOB supply by 3.1 million square feet, while the top 100 markets show a shortfall of 4.7 million square feet. Also, vacancy in the property subtype has remained low, ranging from just 7.5 percent to 7.7 percent.
Blue Owl's acquisition is expected to close either in this quarter or the three-month period that ends in September, pending Sila's shareholder approval and customary conditions.
BofA Securities served as Sila's financial advisor, with Citigroup Global Markets and Truist Securities involved in the same role for Blue Owl.
Source: GlobeSt/ALM