This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Health Care REIT Adds to Sunrise Deal

NEW YORK ( The Deal) -- Health Care REIT Inc., which last month said it would acquire Sunrise Senior Living Inc., said Tuesday, Sept. 18, it and its merger partner were buying out certain Sunrise joint ventures in deals valued at $710 million.

Toledo, Ohio-based Health Care REIT on Aug. 22 announced plans to buy Sunrise for $1.9 billion in cash and assumed debt in a deal that would position it as one of the world's largest owners of senior housing facilities. The company said at the time that it would likely exercise options held by McLean, Va.-based Sunrise to acquire 100% ownership of certain joint venture properties.

Health Care REIT said Tuesday that since the deal announcement, the companies have acquired or agreed to acquire majority interests in 38 of Sunrise's 105 joint venture properties. Including assumed debt, the follow-on deals have increased the value of real estate to be acquired by 68%, to $3.2 billion.

The company said it had closed the acquisition of five of the 38 properties for $243 million. Those properties are in the United Kingdom and are managed by Sunrise but purchased from a partnership between Sunrise and an institutional investor. The remaining 33 majority interests will be acquired by Sunrise using proceeds from a $467 million loan to be provided by Health Care REIT.

Company chairman and CEO George L. Chapman in a statement said, "We are extremely pleased with our initial success in reaching agreements to purchase additional Sunrise joint venture partner interests." "The ability to transform what was initially announced as a $1.9 billion real estate opportunity into a $3.2 billion transaction upon closing accelerates our portfolio quality enhancement initiatives including increasing the private pay component of our portfolio and its concentration in east and west coast markets and top 31 MSAs," Chapman said.

Health Care REIT has been an aggressive acquirer. Since the beginning of 2011, it has announced deals to buy Benchmark Senior Living LLC for $890 million, Silverado Senior Living Inc. for $298 million and the real estate assets of Genesis HealthCare Corp. for $2.4 billion.

The company also plans to offer 22 million shares of its common stock with an underwriter option to buy an additional 3.3 million shares. Proceeds from the offering run by Bank of America Merrill Lynch, JPMorgan and Morgan Stanley would be used to repay outstanding indebtedness and for general corporate purposes, including investing in additional properties.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HCN $63.44 -2.50%
AAPL $112.88 -0.36%
FB $89.54 -1.60%
GOOG $618.88 -1.80%
TSLA $249.20 0.29%

Markets

Chart of I:DJI
DOW 16,562.60 -80.41 -0.48%
S&P 500 1,974.38 -14.49 -0.73%
NASDAQ 4,778.4870 -49.8380 -1.03%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs