Sunrise buys Constellation assets, posts record profits Foreshadowing the continued consolidation in the assisted living and healthcare housing sectors, Fairfax, Va.-based Sunrise Assisted Living is acquiring most of the assets of Columbia, Md.-based Constellation Health Services for about $72 million in cash and the assumption of $16 million in debt. The deal gives Sunrise 12 senior living communities in Maryland, Virginia and North Carolina, three communities under construction and several development sites.
Sunrise also announced record profits for second-quarter 1999 of $22.7 million (up 62% from a year ago) on a 52% revenue increase over the same period in 1998. Earnings for the first six months were up 50% over 1998. The company also has $300 million in unused credit lines. The company closed on a $400 million revolving credit line with a 14-bank syndicate led by Bank of America in late-July. So, is there more buying ahead?
Alterra Healthcare closes $140M HCR ManorCare deal Alterra Healthcare Corp. completed and funded its $140 million acquisition and financing transaction on 20 properties from HCR ManorCare. Eight more properties are expected to close in the third quarter, and one property was taken from the original 29-property pool. The unique aspect of this transaction is the synthetic lease financing, which carries an initial effective lease rate of 9.66%. Greenwich Capital Financial Products is the lender in the deal. Key Global Finance assisted in the lease structuring.
Moody's confirms Health Care REIT; shifts outlook to "stable" Moody's Investors Service, New York, confirmed its debt and preferred stock ratings on Health Care REIT, but also revised the REIT's ratings outlook to "stable" from "positive." According to Moody's, "The outlook change is based on Health Care REIT's high concentration in assisted living facilities, and the currently low cash flow coverage of the assisted living portfolio as many of the properties are not fully seasoned."
HCP plans $1 billion acquisition of AHP Health Care Property Investors (HCP) is acquiring American Health Properties (AHE) in a stock-for-stock transaction valued at about $1 billion. Rating agency Duff & Phelps, New York, said it "considers merger integration risks to be relatively low, reflecting both HCP's and AHE's essential function as asset managers..."