Sunrise Assisted Living, McLean, Va., said last month that it will sell nine facilities for $131 million to a partnership controlled by Prudential Real Estate Investments. Sunrise will retain long-term management contracts for the assisted-living communities. The company also completed the sale of two facilities to Aureus Group for $28.1 million. All told, Sunrise signed deals to sell 22 properties for a total of $314.1 million in 2000. Thirteen of those sales have been closed.
Extendicare, Markham, Ontario, is building eight nursing homes, with a total of 1,100 beds, in the Canadian province with financing from a subsidiary of the Ontario Municipal Employees Retirement System. Six of the homes are under construction, and the remaining two will break ground within six months, according to Extendicare. The company operates 276 nursing homes in Canada and the U.S. Borealis Long-Term-Care Facilities, the pension fund subsidiary, will own the eight facilities and lease them to Extendicare.
ElderTrust, Kennett Square, Pa., said last month that its major bank lender will delay the maturity of its credit facility by 14 months, provided a U.S. bankruptcy court approves a rent-cutting agreement between ElderTrust and bankrupt nursing home operator Genesis Health Ventures. ElderTrust, a real estate investment trust with interests in 31 properties, owed $39 million as of Sept. 30, 2000, to the lender, German American Capital Corp., New York. The lender would receive warrants for 118,750 ElderTrust shares at $1.70 per share and slightly higher interest payments in return for the delay. ElderTrust leases 23 facilities to Genesis and recently agreed to cut Genesis' rent by $745,000 annually.
Magellan Health Services reported sharp losses for the fourth quarter and fiscal 2000, both ended Sept. 30, as the Columbia, Md.-based company continues to shed side businesses and focus on behavioral services. Magellan reported a net loss of $65.2 million for fiscal 2000, or $2.15 per share, compared with net income of $4.7 million, or 15 cents per share, in fiscal 1999, on net revenue of $1.9 billion. Magellan said it will take noncash charges of $20.2 million and $7 million related to closing its outpatient practice operations and for severance charges in the behavioral and corporate divisions of Magellan, respectively.
Gambro has reorganized in the wake of the departure of its 47-year-old president, Brad Nutter, who resigned two months ago for personal reasons. Gambro will divide its renal-care clinics into two divisions, with Gambro Healthcare U.S. assuming responsibility for American clinics and Gambro Healthcare International for overseas clinics. Larry Bucklew has been named president and chief executive officer of Gambro Healthcare U.S.; Terry Gilpin will serve as president of Gambro Healthcare International. During Nutter's 10-month reign, Gambro settled an antitrust suit filed by Michigan's attorney general and a whistleblower fraud suit regarding its Florida laboratories.