Newcastle Announces Agreement to Acquire Senior Housing Portfolio from Holiday Retirement

NEW YORK, NY - Newcastle Investment Corp. announced that it entered into an agreement to acquire a 52-property portfolio of senior housing properties from certain subsidiaries of Holiday Acquisition Holdings LLC for approximately $1.01 billion. The Company expects to invest approximately $300 million of equity to acquire the Holiday Portfolio and to fund the remainder of the purchase price with non-recourse mortgage debt. The Holiday Portfolio includes 52 independent living properties with 5,885 units located across 24 states. The Portfolio is 100% private pay and had an average occupancy rate of 91% as of September 30, 2013. Concurrently with the closing of the Holiday Acquisition, the Company intends to enter into two triple net master leases with affiliates of Holiday with first-year rent equal to 6.5% of the purchase price.

Upon closing the Holiday Acquisition and other committed transactions, the Company will have invested approximately $600 million of equity in senior housing assets. The NCT Senior Housing Portfolio, inclusive of the Holiday Acquisition and other committed transactions, includes 99 properties with 12,347 rentable units, and is targeted to generate a 17% FFO yield in 2014.

Newcastle expects the closing of this transaction to occur in December. The closing is subject to customary closing conditions and the completion of the financing, and there can be no assurance as to the timing or occurrence of the closing.

Holiday is the largest private owner and operator of senior housing properties in North America. Holiday operates 333 properties with 40,000 apartments in 43 states in the in the United States and seven provinces in Canada. Holiday is majority owned by private equity funds managed by an affiliate of Newcastle’s manager.