Two of Sabra Health Care REIT's significant investors have declared opposition to a proposal to acquire a second healthcare REIT, claiming that Sabra currently pays too much for inadequate nursing assets. Hudson Bay Capital Management and Eminence Capital will not vote in favour of the deal to buy Care Capital Properties. The proposed acquisition would create one of Canada's largest health care REIT companies, with assets valued at more than $900 million. The merger would create a $7.4bn firm, elevating it to investment-grade and offering greater access to debt markets.
Two of Sabra Health Care REIT's significant investors have declared opposition to a proposal to acquire a second healthcare REIT, claiming that Sabra currently pays too much for inadequate nursing assets. Hudson Bay Capital Management and Eminence Capital will not vote in favour of the deal to buy Care Capital Properties. The trust’s skilled nursing facilities are experiencing difficulties that are only likely to continue, according to the investors. The merger would create a $7.4bn firm, elevating it to investment-grade and offering greater access to debt markets.