National Health, Welltower to transition, sell legacy holiday properties

Healthcare real estate investment trusts National Health Investors Inc. and Welltower Inc. signed a memorandum of understanding in relation to the litigation of legacy holiday properties.

Under the memorandum, the two REITs intend to transition 16 legacy holiday properties to new tenants, with Welltower expected to close the deal April 1. National Health also plans to sell a legacy holiday property, with Welltower expected to be in charge of closing the sale.

Welltower will pay National Health about $6.9 million, which will be held in escrow until the final settlement is executed. National Health is entitled to a security deposit totaling approximately $8.8 million.

National Health will file a stipulation of dismissal with prejudice and a form of order closing the litigation within three days after the property transition and execution of the final settlement agreement.