Office Properties Income Trust (OPI) recently announced plans to merge with Diversified Healthcare Trust (DHC). Under the terms of the deal, OPI will acquire all outstanding common shares of DHC in an all-share transaction. Upon completion, OPI will become the surviving entity and change its name to Diversified Properties Trust. The merger is expected to close during Q3 2023.
Christopher Bilotto, President, and COO at OPI expressed confidence that this move would create a stronger combined company with more diversified revenue sources and reduced exposure to a weakening office market environment. In addition, it grants entry into cash flows from DHC’s medical office and life science portfolio as well as potential NOI growth from its senior housing portfolio. To finance closing costs for this transaction JPMorgan Chase Bank has provided a $368 million bridge loan facility for use by OPI.
