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Sunrise Senior Living Enters Into Agreement to Sell 21-Community Portfolio for $204 Million
Sunrise Expects to Retain Approximately $60 Million in Proceeds
News Release
October 12, 2009
HousingZone
Sunrise Senior Living today announced that it has entered into an agreement to sell 21 wholly owned assisted living communities, located in 11 states, to BLC Acquisitions, an affiliate of Brookdale Senior Living, for $204 million. BLC Acquisitions has placed into escrow an earnest money deposit of $5 million toward the purchase price. The closing date is currently scheduled for November 16. At the closing of the sale, Sunrise is expected to receive approximately $60 million in proceeds after payment or assumption by BLC Acquisitions of certain mortgage loans, the posting of required escrows, and payment of expenses by Sunrise, but prior to the use of any such funds to repay a portion of the outstanding amounts under Sunrise's bank credit facility. Closing of the transaction is conditioned, among other things, on obtaining the requisite consent of the Company's lenders under its bank credit facility by 5 p.m. on October 19. The Company expects to record an impairment charge of approximately $7 million in the third quarter of 2009 to write down five of the 21 communities to fair value. The Company expects to record a gain on the sale of real estate of approximately $50 million upon closing of the transaction.
"This is another important step in our restructuring process and provides us with needed funds to pay down our bank line and with additional working capital," said Mark Ordan, Sunrise's chief executive officer. "We are particularly pleased that our residents and team members in these communities will join a fine and committed operator like Brookdale."
Sunrise was advised on the sale by Goldman, Sachs and Co.
© 2010, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.
