Sale/Partial Leaseback of a 20-Asset, 888,883 Square Foot Healthcare Real Estate Portfolio Located in North Carolina

Transaction Overview

Novant Health, Inc. ("Novant") engaged Kaufman, Hall & Associates, LLC ("Kaufman Hall") as its exclusive financial advisor with respect to a real estate transaction for 20 Novant Health facilities across the Winston-Salem, Charlotte and Wilmington regions. Novant Health is leasing back all the space it currently uses, ensuring uninterrupted access for patients to health care services.

Kaufman Hall's Role

October 16^TH, 2024 - Kaufman Hall's engagement with Novant was completed in two phases: (i) underwriting and transaction structuring aimed at meeting certain identified operational and financial goals ("Goals") and (ii) the implementation of the transaction that most effectively aligned with these Goals.

The initial phase involved a comprehensive process that included identifying Novant's overall Goals, evaluating a diverse (by geography and utilization) portfolio of existing owned real estate assets, assessing the financial implications of various considered transaction options, and crafting a transaction structure featuring elements designed to achieve Novant's Goals (e.g., the inclusion of specific control provisions including structured repurchase options).

Subsequently, Kaufman Hall coordinated a competitive bid process among a select targeted number of institutional healthcare real estate investors. The culmination of this process was the sale / partial leaseback of 20 owned assets, with a subset of on-campus medical office buildings and ambulatory surgery centers structured with long-term ground leases.

About the Companies Involved

Kaufman Hall

For more than 30 years, Kaufman Hall has provided independent, objective insights to assist clients in fulfilling their missions, achieving their goals, and tackling their toughest problems. Kaufman Hall's real estate practice provides transaction advisory services to many of the nation's top healthcare providers and developers/investors of healthcare real estate. Kaufman Hall's focused model provides clients with an unmatched level of relevant experience & independent transaction analysis, structuring and execution capabilities. Kaufman Hall's real estate practice was launched in 2021 through the acquisition of Healthcare Real Estate Capital (HRE Capital). Providing both consultative and transaction-oriented services, including asset/portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, the real estate practice has been involved with more than $15 billion of sector-specific real estate transactions across the United States since 2008.

Novant Health

Novant Health is an integrated network of more than 850 locations, including 19 hospitals, more than 700 physician clinics and urgent care centers, outpatient facilities, and imaging and pharmacy services. This network supports a seamless and personalized healthcare experience for communities in North Carolina and South Carolina. Novant Health is nationally recognized for its unwavering commitment to safety and the highest quality care, and serves as a catalyst for healthcare transformation through clinical trials, leading-edge research, innovative care delivery models and robust virtual care networks.

Questions: Contact E. Hunter Beebe [email protected] 917.568.8556

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