Sunrise Shuts the Door on $311M Sale/Long-Term Manage-Back Deal

MCLEAN, VA-Keeping true to its corporate strategy of reinventing itself as an A-list senior living management concern, Sunrise Senior Living Inc. has closed on a $311 million sale/long-term manage back deal with Chicago-based Macquarie Capital Partners LLC-advised investors. Completed in two separate parts, the massive transaction–which was originally announced in May as part of a $564 million, 34-property sale/long-term manage back arrangement–involves 23 properties in various states across the US.

Sunrise disposed of 12 consolidated senior living properties in return for $167 million, and the company received $144 million for 11 of its joint venture properties. The transactions give the investment team 90% interest in the senior communities, while Sunrise holds on to 10% interest, as well as its property operation and management duties. The company will see pre-tax proceeds totaling $116 million from the 23-property transaction. The money will be directed toward Sunrise’s $150 million stock repurchase program, of which $34 million has already been completed.

Sunrise expects to see additional pre-tax proceeds totaling $77 million from the deals set to close in the third and fourth quarters involving the 11 remaining properties of the grander 34-property deal. Combined with the $116 million in proceeds from the recently announced closing, the company is left with $193 million with which to do what it will. “Possible uses for the remaining cash include buy backs and other options; maybe a dividend,” Sunrise’s senior vice president of corporate strategy and capital markets, Charles A. Post, tells GlobeSt.com. “We will make the determination as to what to do with the excess proceeds as we go along.”