Sunrise Senior Living, Inc. (NYSE: SRZ) disclosed that certain of its subsidiaries have entered into a purchase and sale agreement with a group of funds affiliated with Morgan Stanley for the purchase by the Company of the funds’ 80% ownership interest in a joint venture entity, AL US Development Venture, LLC, that owns 15 senior living facilities, for a purchase price of approximately $45 million. As part of the purchase transaction, the venture will seek an amendment to the loan provided a $25 million dollar principal payment against the loan in exchange for modification of various terms of the loan and an extension of the maturity date. The units in the portfolio had an average occupancy of 87.3% for 2010 and total NOI of approximately $25.9 million. The closing is expected to occur in the next thirty to forty five days.
Sunrise CEO, Mark Ordan commented: “This purchase fits perfectly in our announced strategy of owning more of what we manage. The purchase of these 15 purpose built Sunrise mansions clustered in major metropolitan markets is an excellent use of the proceeds of our convertible debt offering.”
See the 8-K Filing for the announcement.