Health Care REIT To Acquire 90% Interest In Senior Housing Properties

Equity real estate investment trust, Health Care REIT Inc. (HCN: News ) said that it has signed an agreement with an affiliate of Arcapita Inc. to acquire its 90% interest in a venture owning 29 senior housing properties managed by Sunrise Senior Living Inc. (SRZ) for approximately $643.5 million excluding transaction costs on Tuesday. The transaction is worth approximately $643.5 million excluding transaction costs. The deal would be financed by a combination of cash, plus a 90% interest in the $309 million of existing debt held by the venture.

Health Care expects to close the transaction in the fourth quarter of 2008 and was not included in the company’s previously announced investment or earnings guidance. However, the deal is not expected to impact the company’s previously issued 2008 earnings guidance. The company expects to adjust 2008 investment guidance after close of the transaction. The transaction is expected to become slightly accretive to FFO from breakeven, beginning 2009.

The Toledo, Ohio-based company will pay $365.4 million in cash and bear 90% of $309 million existing non-recourse mortgage debt priced at an average interest rate of 5.2%, held by the venture, subject to final due diligence. McLean, Virginia-based Sunrise Senior Living, a senior housing community operator, will continue to manage the properties apart from retaining a 10% stake in the venture.

Source:rttnews.com