Joint Venture Group Will Buy Sunrise Senior Living Management Businsess
September 14, 2012
September 14, 2012. When Health Care REIT announced its agreement to purchase Sunrise Senior Living last month, it also disclosed that it was working out the final details to sell the management business to a third party. Today, it was announced that a joint venture between Kohlberg Kravis Roberts & Co., Beecken Petty O'Keefe & Company and Coastwood Senior Housing Partners will be buying the management business for $130 million. Health Care REIT intends to keep a 20% interest in the management company, which will retain the Sunrise name, and will "invest" $26 million. The transaction is expected to close when the Health Care REIT/Sunrise transaction closes early next year. This joint venture group came up short in the bidding for Erickson Retirement Communities nearly three years ago. Dan Decker, the managing partner for Coastwood, resigned his Health Care REIT board seat last month when the main Sunrise deal was announced, and we suppose he could not resign before the announcement without potentially alerting investors that something was up.