Sunrise unitholders approve amended offer from Ventas

By Lisa Kerner

Charlotte, N.C., April 19 - Sunrise Senior Living Real Estate Investment Trust unitholders voted in favor of Ventas, Inc.'s amended offer at a special meeting on April 19. The $1.97 billion transaction is expected to close on or before April 26.

The companies amended their Jan. 14 purchase agreement, increasing the amount payable to unitholders of Sunrise to C$16.50 from C$15.00 per unit.

In early April, Ventas had been seeking unspecified damages from Sunrise in the Ontario Superior Court of Justice as the result of breaches by Sunrise of its standstill enforcement obligations in the purchase agreement between Ventas and Sunrise involving Health Care Property Investors, Inc.

Health Care Property's several offers, all since withdrawn, are considered breaches of its standstill agreement with Sunrise, which prohibits it from making any proposal to acquire any assets of Sunrise through May 2008.

"We are extremely pleased with the outcome of [Thursday's] vote," Ventas chairman, chief executive officer and president Debra A. Cafaro said in a company news release.

"We are excited about adding the Sunrise REIT portfolio to our company. It is a transformational acquisition that includes 77 high-quality, private-pay senior living communities in North America; gives us access to an exclusive development pipeline; creates a new, important relationship with Sunrise Senior Living, Inc.; provides entry into the attractive Canadian seniors housing market; and should result in excellent growth going forward."

Sunrise Senior Living, Inc., the developer of most of the acquired Sunrise assets, will remain as the manager of all the properties under the existing long-term management contracts.

Toronto-based Sunrise was formed to indirectly acquire and own senior living communities.

Ventas is a Louisville, Ky., health care real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.