Ventas, Inc., said today that it has agreed to acquire the real estate interests in 58 private pay senior living communities from affiliates of Sunrise Senior Living, Inc., for $41.5 million, as well as $145 million in mortgage debt.
Ventas and Sunrise have also agreed to modify the management agreements on all 79 senior living communities managed by Sunrise. Upon the closing, which is expected sometime during the fourth quarter, Ventas will own 100% of all 79 of its communities managed by Sunrise.
“Sunrise, in exchange, will receive a significant capital infusion from the transaction and eliminate the currently exercisable termination rights Ventas has under the existing management contracts, thus enhancing Sunrise's corporate stability and maintaining its preeminent global brand in senior living,” said Debra A. Cafaro, chairman, president and CEO of Ventas.
“[S]elling our joint venture interest to Ventas brings Sunrise additional funds to improve our balance sheet and provides a foundation for careful growth,” Sunrise CEO Mark Ordan said. “We have seen clear improvements in performance and we are excited to do all we can to continue this trend.”