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MCLEAN, VA-In an arrangement that could be valued at up to $52.5 million, Sunrise Senior Living Inc. has committed to acquiring Irving, TX-headquartered senior housing management and development company Greystone Communities Inc. and certain associated units. As a result of the definitive agreement Sunrise will take on Greystone’s 14 Continuing Care Retirement Communities contracts, contracts for 17 communities currently in the works, as well as other consulting and marketing agreements. The 14 existing contracts involve properties in Alabama, Arizona, Florida, Hawaii, Indiana, Nevada, New York, West Virginia and Texas.

Twenty-three-year-old Greystone’s purchase price–which will be met by Sunrise through its cash holdings and funds from a corporate credit facility–will be about $45 million, plus $7.5 million in annual performance rewards through 2007, for an estimated possible total of $52.5 million.

“This acquisition will further establish Sunrise as a leading CCRC operator,” says Sunrise chairman and CEO Paul Klaassen. “Greystone is a first-class organization and its presence as a leader in the large and growing not-for-profit CCRC business allows Sunrise to immediately expand into that sector, which should enhance our future growth.”

There will not be an actual exchange of any real estate properties involved in the deal. When all is said and done with the transaction, Greystone will exist as a division of Sunrise under the direction of existing Greystone management.

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