Stockholders of Magellan Health Services, Atlanta, have approved a $480 million sale-leaseback agreement with Crescent Real Estate Equities Co. in a transaction involving 90 psychiatric hospitals.
The deal gives Crescent, a Fort Worth, Texas-based real estate investment trust led by financier Richard Rainwater, its first exposure in healthcare (Feb. 3, p. 12). Under the deal, Magellan's psychiatric hospital company, Charter Behavioral Health Systems, becomes a privately held joint venture. The venture, equally owned by Magellan and Crescent Operating, a Crescent affiliate, will operate the 90 facilities.
Shares of Crescent Operating began trading over the counter on June 13.
In addition to a 50% interest in the joint venture and warrants to acquire some 1.3 million Magellan common shares, Crescent Operating's assets include the stock of a construction equipment sales, leasing and services company and a 1.21% interest in a private venture capital fund.