Denver-based Healthpeak Properties has closed its $21 billion all-stock merger with Milwaukee-based Physicians Realty Trust. The companies will operate under the name Healthpeak Properties.
The companies shared plans to merge in October through a definitive agreement.
The combined company will feature a portfolio of 52 million square feet with footprints in more than 30 markets, including 40 million square feet of outpatient medical settings in high-growth markets such as Houston, Nashville, Tenn., Denver, Phoenix and Dallas with hospital and health system affiliations.
"We expect to generate merger-related synergies of $40 million during 2024 with potential for $20 million or more of additional synergies by year-end 2025," Scott Brinker, president and CEO of Healthpeak, said in a March 1 news release.
The merger also resulted in the Healthpeak board of directors expanding from eight directors to 14, including the addition of five directors who previously served on Physicians Realty Trust's board.
Healthpeak entered into a $750 million, five-year unsecured term loan on March 1, with proceeds from the loan used toward the $210 million repayment of Physicians Realty Trust private placement notes, and it will be utilized for general corporate purposes such as transaction costs and borrowing repayments under Healthpeak's commercial paper program.