Pramerica Real Estate Investors announces the successful sale on August 31, 2012 of a portfolio of five senior living facilities located in the United Kingdom to a subsidiary of HealthCare REIT, Inc. (NYC: HCN) for a purchase price of £154 million (approx. 191 million).
Pramerica Real Estate Investors is the European arm of the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU), which is headquartered in the United States.
The five facilities were all opened in 2009 and comprise a total of 522 beds. These facilities were the final five communities held in two separate joint ventures between Sunrise Senior Living Inc. (NYC: SRZ) and institutional funds managed by Pramerica that were set up in January 2005 and January 2007. Sunrise will remain as the operator of the facilities.
In total these two joint ventures have developed and sold 22 senior living facilities in the U.K. of more than 1.4 million ft² (approx. 130,060 m²) with more than 2,100 beds. These facilities opened over a period from January 2006 through October 2009 and were sold for a total investment volume of approximately £700 million (approx. 868 million).
"The sale of these assets represents an excellent overall outcome for our senior living investment strategy," commented Philip Barrett, Managing Director at Pramerica. "This is a sector that we identified some time ago as offering significant potential for value growth, and the pricing we have demonstrated on our sales shows the strong location and quality of the assets as well as the out performance that has been achieved by our partner Sunrise."
CBRE Specialist Markets, PWC and Eversheds acted for the joint ventures in the sale.
Source: FTI Consulting