Joint ventures increase value of Health Care REIT's buyout of Sunrise by $1.3 billion

Share this article:
Long-term care providers are participating in 'most ambitious test' of bundled payments, CMS announc
Long-term care providers are participating in 'most ambitious test' of bundled payments, CMS announc

Health Care REIT announced Tuesday that the value of its deal to purchase Sunrise Senior Living is no longer $1.9 billion, as announced last month. It's risen to $3.2 billion, thanks to value added by joint-venture acquisitions the two companies have agreed to.

Since Toledo, OH-based Health Care REIT agreed to acquire Sunrise on Aug. 22 for $1.9 billion in cash, the two companies agreed to acquire majority interests in 38 of 105 joint venture properties operated by Sunrise in the United Kingdom. That increases the real estate value of the opportunity into a $3.2 billion transaction upon closing. Of the 38 properties, 16 were subject to buy/sell rights and 22 were in joint ventures with no purchase option or buy/sell right, according to a Health Care REIT statement.

With these acquisitions, McClean, VA-based Sunrise is now expected to comprise 58 wholly owned properties and 67 joint venture properties. Health Care REIT's acquisition creates one of the biggest senior living companies in the United States.

Health Care REIT Chairman and CEO George L. Chapman said the deal "accelerates our portfolio quality enhancement initiatives including increasing the private pay component of our portfolio and its concentration in east and west coast markets and top 31 MSAs [metropolitan statistical areas].”
Share this article:

More in News

Rape investigation blocked by nursing home's HIPAA concerns, authorities say ...

Florida authorities say a nursing home is citing privacy laws to impede the investigation of a possible resident rape, according to local news reports.

Jury hands down $14 million negligent care verdict to 'send message' to nursing homes

Jury hands down $14 million negligent care verdict ...

A Massachusetts jury has awarded $14 million to the family of a nursing home resident who died due to a pressure ulcer, dehydration and other conditions linked to negligent care, ...

CCRC executive director salaries hold steady, therapy directors get boost

Continuing care retirement community executive director salaries have barely increased in the past year, while therapy and rehabilitation directors received a boost, a new report shows. The average salary for a therapy and rehab director is currently $95,905.