Sunrise Senior Living Investments, Inc. recently entered into a purchase and sale agreement with Master MorSun Acquisition LLC to purchase MorSun’s 80% ownership interest in a joint venture that indirectly owns seven senior living facilities.
Sunrise already owns the other 20% of the ownership interest in these facilities, and purchased the remainder for approximately $52 million. The facilities are managed by Sunrise Senior Living Management, Inc.
The purchase agreement requires Sunrise to pay an initial deposit of approximately $2.5 million; after August 30, 2011, when the initial due diligence ends, this deposit will become non-refundable, unless Sunrise terminates the purchase agreement before that date.
Financing for the acquisition will be obtained through Sunrise contributing its interest in the existing, currently owned 20% of the ownership interest, valued at approximately $16 million, as well as loan proceeds from new debt financing, which is expected to total approximately $120 million, to the new joint venture. CNL Income partners will contribute approximately $34 million of financing, and will receive approximately 70% of member interest in the new joint venture. Sunrise will get the remaining 30% membership interest and will own the facilities upon closing.
The purchase agreement is expected to close by the end of September, and the facilities will continue to be managed by Sunrise Senior Living Management, Inc.
Written by Alyssa Gerace