Benchmark has closed on eight of the 11 properties representing approximately $117 million in investment. The remaining three properties in New Hampshire and Maine will close following the completion of state licensing procedures.
"This is a substantial new stage for Benchmark Assisted Living. By completing this recapitalization, Benchmark has delivered excellent returns for its investors and now can prosper and grow to the next level with the support of KFH, a major international core investor," says Tom Grape, Benchmark founder, chairman and CEO.
Dick Layman of Legg Mason Real Estate Services, Kuwait Finance House investment advisor, notes that Benchmark's reputation was attractive to the firm as well as its ability to deliver consistently high operating results and its current cash flow.
Ali O. Al-Ghannam of Kuwait Finance House international real estate department points out that the New England region has "several of the most attractive senior housing markets in the country." Kuwait Finance House has more than $11.5 billion in assets with global real estate holdings in the US, Europe and the Middle East. Its portfolio includes over $3 billion of US real estate investment.
AEW Capital Management was Benchmark's initial investor. The two formed a joint venture in 1997 to acquire these 11 properties, totaling 756 units, located in Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont.
"AEW has an investment expertise in the senior housing sector, and in 1997, when we began our relationship with Benchmark, we were looking for a partner/operator with considerable potential for growth. Tom Grape and the Benchmark team were one of the strongest in the industry. Their performance and capabilities as a company have enabled AEW to deliver strong returns to our investors," says Marc Davidson, principal and head of AEW's Partners Group.
This recapitalization comes on the heels of Benchmark's $160-million acquisition last month, when it purchased Village Retirement, another New England-based assisted living provider. The purchase increased the company's units by 60%. GMAC Commercial Mortgage provided $105 million for Benchmark's asset acquisition. KFH participated in the deal through an Ijara--or lease to own--lease structure.
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