JV to Acquire $200M in Senior-Living Properties

MCLEAN, VA-Senior care company Sunrise Assisted Living, Inc. has teamed up with Deutsche Bank’s DB Real Estate to form a joint venture to acquire more senior living properties all over the nation. The venture will take $25 million in capital, along with debt financing, to purchase as much as $200 million worth of facilitates. Sunrise will serve as manager but Sunrise and DB Real Estate will jointly own the properties.

“The alliance between the real estate private equity arm of Deutsche Bank and Sunrise comes at a time when many other health care owners and operators are facing an increasingly challenging environment,” DBRE’s managing director David Bush says in a statement. “The opportunity this creates — to acquire underperforming properties at attractive prices and have them managed by an industry leader — is an exciting one.” Repeated calls to Sunrise regarding the name of the joint venture as well as any specific areas to be targeted for acquisitions were not returned. Together, the companies plan to acquire between 10 and 15 new management contracts annually. The venture is already said to be looking at particular facilities for potential acquisition, which is scheduled to begin in early 2002.