Omega Healthcare Investors Inc. sold the majority of its struggling Gulf Coast Health Care facilities for more than $300 million, the company shared Monday.
The real estate investment trust (REIT) sold 22 previously leased and operated Gulf Coast facilities for $318 million in cash, according to a news release. The net cash proceeds, including related costs, were $304 million — amounting to a net gain of approximately $113.5 million.
The deal was officially announced just before the real estate investment trust’s Q1 2022 earnings call, in the midst of Gulf Coast’s Chapter 11 bankruptcy proceedings and just a month after the nursing home operating company shared that it had dissolved.
“We continue to believe that the strong appetite for skilled nursing assets and secular tailwinds continue to exist for this industry,” Omega’s CEO Taylor Pickett said in the news release.
Gulf Coast, which employed over 6,000 workers throughout the states of Florida, Georgia and Mississippi, announced in a LinkedIn post on April 1 that it had dissolved.
“We are extremely grateful for the amazing healthcare professionals on our team and wish them much success in their future endeavors,” the company’s LinkedIn post read.
Gulf Coast filed for bankruptcy in October, citing decreased resident occupancy levels, “crippling” staff retention issues, and an increase in expenses related to the COVID-19 pandemic.
Gulf Coast previously leased 24 facilities from certain indirect affiliates and subsidiaries of Omega Healthcare Investors, Inc. and four facilities from certain indirect affiliates and subsidiaries of Eagle Arc Partners LLC — formerly known as Blue Mountain Holdings, court documents stated.
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