Canadian senior living operator Revera Inc. is now officially the majority owner of Sunrise Senior Living’s (NYSE: SRZ) management company following the completion this week of a previously announced transaction.
The completed transaction arrives two months after Health Care REIT (NYSE: HCN), which owned 20% interest in Sunrise’s management company, agreed to recapitalize its ownership interest to 24%.
Now that the deal has closed, Revera owns 76% interest in the management company under the terms of the agreement.
Together, the joint venture partnership between Revera and Health Care REIT owns 47 retirement communities in Canada.
“This strategic investment in one of the most trusted brands in seniors housing, with a strong presence in the U.S. and U.K. markets, demonstrates Revera’s commitment to growth in this sector,” stated Revera Inc. President and CEO Thomas G. Wellner. “We are pleased to further strengthen our partnership with Health Care REIT, as we both share a long-term investment horizon and a relationship approach to business.”
Health Care REIT first partnered with Revera in May 2013 when it announced it would own a 75% interest in the Canadian company’s $1.35 billion senior living portfolio, with Revera retaining ownership of the remaining 25%.
The portfolio—comprised mostly of independent living communities, many of which also offering assisted living and/or memory care—consisted of properties located in Toronto, Vancouver and Calgary with an average occupancy rate of 89%.
Following the completed transaction, Sunrise will continue to operate independently, managing all of its 290 communities across Canada, the U.S. and U.K. under the Sunrise brand from the company’s headquarters in McLean, Virginia.
Written by Jason Oliva
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