Toledo, Ohio-based Health Care REIT Inc. has entered into a definitive agreement to acquire all of the outstanding common stock of McLean, Va.-based Sunrise Senior Living Inc. for $14.50 per share in an all-cash transaction. The acquisition positions Health Care REIT to be among the largest owners of senior housing in the world, with over 58,000 units located in the U.S., Canada and the U.K.
As part of the transaction, Health Care REIT will acquire Sunrise's 20 wholly owned senior housing communities and Sunrise's interest in joint ventures that own 105 senior housing communities. The purchase price reflects a real estate value of approximately $1.9 billion, of which approximately $950 million will be paid in cash and the balance through the assumption of debt at an average interest rate of approximately 4.9%.
‘This acquisition powerfully advances our strategic vision: own the highest quality, private pay seniors housing communities in strong, growing, affluent markets and align with experienced, dynamic management teams,’ says George L. Chapman, Health Care REIT's chairman and CEO. ‘Sunrise has been a leader in the transformation of senior housing. This transaction positions us to build on our collaborative, relationship-based investment philosophy and benefit from the ongoing transformation of the sector. There are few opportunities to acquire assets of this quality in a transaction of this scale.’