Health Care REIT completes Sunrise acquisition

Health Care REIT has closed its deal to acquire Sunrise Senior Living, the McLean, Va.-based operator of nursing, rehabilitation and other senior-care facilities.

The formerly publicly traded company sold for $14.50 per share in cash. In a news release, Toledo, Ohio-based Health Care REIT placed the deal value at $3.4 billion and said it was expected to rise to $4.3 billion by July after buying out some of Sunrise's joint-venture partners.

The deal includes 120 wholly-owned properties and five remaining joint venture properties, according to the release.

Health Care REIT said that the properties generate average monthly rents that are nearly twice as high as the national average because they're concentrated in communities such as Southern California, Chicago, Philadelphia, London and Montreal, which have a high number of elderly residents, affluence and significant barriers to entry.

The real estate investment trust added that it has already accelerated the buyout of 100 joint-venture properties since the deal was proposed in August. About 53 of these agreements will close by July, when the higher deal value will be realized.

Sunrise also said it closed the sale of its management business to an entity formed by private equity firms Kohlberg Kravis Roberts & Co. and Beecken Petty O'Keefe & Co. as well as Health Care REIT.

Mark Ordan, Sunrise's CEO, is stepping down after the sale, but will remain in his role for up to a year during a transition period.