Sunrise Senior Living (NYSE: SRZ) said it completed the purchase of the remaining 80% ownership interest in AL US Development Venture, a joint venture between a group of funds affiliated with Morgan Stanley.
Originally announced in April, the deal gives Sunrise 100% membership interest in 15 senior living communities.
“We are most excited to own these best-in-class assets,” said Mark Ordan, CEO of Sunrise. “The Sunrise portfolio and brand, both owned and managed, have been honed for 30 years. Our portfolio is overwhelmingly weighted in the largest MSAs, and concentrated in assisted living and memory care – a unique, need driven and valuable position.”
As part of the deal, Sunrise entered into a loan modification agreement with AL US’s lender, HSH Nordbank, that provides for an extension of the maturity date through June 14, 2015, a partial pay down of $25 million, a cash sweep through maturity, and the release of certain management fees that were escrowed.
In addition, the loan modification eliminated the requirement to further subordinate or defer management fees provided no event of default occurs. The loan modification also provides relief under current debt service coverage requirements and restructures other terms of the loan.
As of March 31, 2011, Sunrise operated 317 communities located in the United States, Canada and the United Kingdom.