Health Care REIT discusses joint venture buyouts

Associated Press Modified: September 18, 2012 at 8:16 am •  Published: September 18, 2012
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TOLEDO, Ohio (AP) — Health Care REIT says accelerated joint venture buyouts related to its acquisition of Sunrise Senior Living Inc. will raise the expected real estate value of those properties to about $3.2 billion from $1.9 billion.

Health Care REIT is a real estate investment trust that invests in senior housing and health care real estate.

The Toledo, Ohio, company announced in August that it would buy Sunrise in an all-cash deal worth about $1 billion. Under the terms of that agreement, Health Care REIT will pay $14.50 for each share of McLean, Va.-based Sunrise.

Health Care REIT Inc. said Tuesday that since it announced its planned buyout of Sunrise last month, the two companies have acquired or agreed to acquire majority interests in 38 of the 105 joint venture properties. Health Care REIT says it closed on the acquisition of five of the 38 properties for $243 million during the third quarter. Those properties, which are in the U.K., are managed by Sunrise and were purchased from a partnership between Sunrise and an institutional investor.

Sunrise will buy majority interests in the other 33 properties using proceeds from a $467 million loan to be provided by Health Care REIT. The loan is expected to close in the fourth quarter and will be converted to ownership by Health Care REIT once the Sunrise acquisition closes.

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