TOLEDO, OH—Last July, GlobeSt.com reported that Toledo, OH-based Health Care REIT had finalized a $4.3-billion investment in Sunrise Senior Living. And HCN has just decided to further align itself with Sunrise by entering into an agreement to recapitalize it. Once the transaction closes, most likely in the second quarter, HCN, which currently owns an approximately 20% interest in Sunrise, will own a 24% interest. And Revera Inc., one of Canada’s leading providers of seniors housing, will own the rest.
The companies will acquire their interests in Sunrise from affiliates of Kohlberg Kravis Roberts & Co. L.P., Beecken Petty O’Keefe & Co. and Coastwood Senior Housing Partners LLC. HCN and Revera already operate a joint-venture partnership that owns 47 seniors housing communities in Canada.
“We are pleased with our investment in Sunrise as it is performing in line with our high expectations,” says HCN chairman and CEO George L. Chapman. “KKR, Beecken Petty O’Keefe and Coastwood played an important role in transitioning Sunrise from a public company to a best-in-class, privately-held company. The strong alignment among [HCN], Revera and Sunrise will support continued operational excellence at Sunrise and position it to be a global leader in private pay seniors housing.”
Sunrise and Revera will remain separate companies after the deal closes. And Sunrise will keep its headquarters in McLean, VA, and manage all existing Sunrise communities.
“This is an important strategic opportunity for Revera to invest in a management company that has a presence in the growing and vibrant seniors housing markets in the US and UK,” says Jeff Lozon, president and CEO of Revera. “We are deeply committed to long-term growth in the seniors housing sector and are pleased to further strengthen our partnership with [HCN] by investing in one of the most respected brands in the industry.”
As of September 30, 2013, HCN’s portfolio consisted of 1,197 properties in 46 states, the UK and Canada. Revera has 229 sites across Canada and parts of the US, and operates retirement communities, long-term care homes, nursing and rehab centers and home health services.