Health Care REIT (NYSE:HCN) today announced it has completed the final phase of its acquisition of Sunrise Senior Living, a landmark deal valued at aggregate $4.3 billion.
The acquisition, announced in August 2012, for an initial purchase price of $1.9 billion, includes 120 wholly-owned properties and five additional properties owned in joint ventures with third parties, the companies stated.
Health Care REIT says it expects the portfolio to generate an unlevered NOI yield exceeding 6.5% in the second half of this year. Long term, it projects growth of 4% to 5%, on average.
“The Sunrise transaction epitomizes our strategy to partner with the leading operators to own premier-quality real estate in affluent, infill markets,” said George Chapman, Chairman and CEO of Health Care REIT. “Our team’s execution on the joint venture buyouts exceeded all expectations with respect to timing and economics.”
The company indicated its rate of net profitability will rise year-over year, projecting growth in sales, profits and profitability in 2014 versus 2013.
Chapman said in June it was the best portfolio ever made available. The portfolio includes 10,000 units, 90% of which are of Sunrise’s “mansion” prototype. The average age of the properties is eight years, and they generate on average, rental rates that are nearly 100% higher than the industry average, according to Health Care REIT.
The portfolio comprises properties located in markets including London, Southern California, Chicago, Philadelphia, Boston, Washington, D.C. and Montreal.
Written by Elizabeth Ecker