Orlando, Fla. , Sept. 06, 2018 (GLOBE NEWSWIRE) -- CNL Healthcare Properties II, a non-traded real estate investment trust (REIT) focused on seniors housing and healthcare properties, announced today that its board of directors has elected to not pursue a follow-on offering and close the current equity offering effective Oct. 1, 2018. The board has also formed a special committee comprised solely of its independent directors to begin the exploration of potential strategic alternatives for the REIT.
Strategic alternatives may include, but are not limited to: the sale of the company or its assets and distribution of net sale proceeds to shareholders; or a merger or other transaction with a third party or parties. A liquidation of all, or a substantial portion, of the company’s assets or the sale of the company would require the approval of a majority of the company’s shareholders.
“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,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties II. “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 has also suspended its distribution reinvestment plan and stock redemption plan effective Oct. 1, 2018. CNL Healthcare Properties II stock distributions for July, August and September will be issued on or about Sept. 10, 2018, after which point there will be no further stock distributions. There are no changes to the company’s cash distribution policy or amount at this time.
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 found in attractive Florida markets, along with one fully occupied, system affiliated, on-campus medical office building in the affluent submarket of Overland Park, Kansas.
About CNL Healthcare Properties II
CNL Healthcare Properties II intends to qualify as a real estate investment trust (REIT) for federal income tax purposes beginning with the year ending Dec. 31, 2017, or the first year in which it commences material operations. Based in Orlando, Florida, CNL Healthcare Properties II intends to invest in the seniors housing, medical office, acute care and post-acute care sectors. For more information, visit cnlhealthcarepropertiesii.com.
About CNL Financial Group
CNL Financial Group (CNL) is a private investment management firm providing real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $34 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit cnl.com.
