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Health Care REIT to sell Sunrise's management business for $130 mln
Sept 14 |
Sept 14 (Reuters) - Health Care REIT Inc said it would sell the management business of Sunrise Senior Living Inc , the retirement community operator it agreed to buy in August, to three private equity firms for about $130 million.
Health Care REIT said following the sale to Kohlberg Kravis Roberts & Co LP, Coastwood Senior Housing Partners LLC and Beecken Patty O'Keefe & Co, it will invest $26 million for a 20 percent interest in the new management business.
The sales of the business, which manages 282 communities, will help fund the company's $845 million purchase of Sunrise.
The new business will reduce the base management fees charged on the 20 wholly owned Sunrise communities to 5 percent of revenue, and cut the base fees on another 105 joint venture communities to the lesser of the current management fee or 5.5 percent of revenue, once their JV partners are bought out.
A subsidiary of the new Sunrise management partnership will absorb all the employees of Sunrise Senior Living and operate under the Sunrise brand.
Shares of Health Care REIT were up marginally at $59.67 Friday morning on the New York Stock Exchange.
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