BOCA RATON, FL—Kayne Anderson Real Estate Advisors said Thursday it had completed its acquisition of Sentio Healthcare Properties. KAREA said in May that it would pay $825 million in cash for the KKR-backed, non-listed REIT.
“This transaction brings 33 high quality assets to our seniors housing and medical office portfolios,” says David Selznick, KAREA's CIO. He cites property renovations, facility expansions and other operational enhancements as ways of creating additional value. “We believe the addition of SHP's best-in-class assets further solidifies KAREA's position as an industry leader in the healthcare real estate space and that this transaction positions us to continue to generate strong returns for our investors.”
“It has always been and will continue to be our priority to provide the highest quality service to our residents and partners,” says John Mark Ramsey, CEO of the REIT and managing member of Sentio Investments, its external advisor, which is not included in the acquisition by KAREA. “This has resulted in very attractive investment results for the SHP shareholders, which we expect to continue to deliver for future investors with Sentio Investments. We are confident that KAREA will continue to provide industry leading service and care in the communities.”
KKR first invested in Sentio in 2013 with a $150-million equity commitment. “We have been fortunate for the opportunity to support John Mark and his impressive team at Sentio over the last four years, and we are proud of the results,” says KKR member Billy Butcher.
Citigroup Global Markets Inc. and Holliday Fenoglio Fowler L.P. acted as financial advisors to KAREA, Hogan Lovells US LLP acted as corporate legal advisor and Greenberg Traurig LLP acted as real estate legal advisor. For Sentio, Robert A. Stanger & Co., Inc. and UBS Investment Bank acted as financial advisors; Latham & Watkins LLP, Foley & Lardner LLP and DLA Piper acted as legal advisors. Simpson Thacher & Bartlett LLP acted as legal advisor to KKR. Capital One provided KAREA with a total of $521 million in loans to facilitate the purchase.
BOCA RATON, FL—Kayne Anderson Real Estate Advisors said Thursday it had completed its acquisition of Sentio Healthcare Properties. KAREA said in May that it would pay $825 million in cash for the KKR-backed, non-listed REIT.
“This transaction brings 33 high quality assets to our seniors housing and medical office portfolios,” says David Selznick, KAREA's CIO. He cites property renovations, facility expansions and other operational enhancements as ways of creating additional value. “We believe the addition of SHP's best-in-class assets further solidifies KAREA's position as an industry leader in the healthcare real estate space and that this transaction positions us to continue to generate strong returns for our investors.”
“It has always been and will continue to be our priority to provide the highest quality service to our residents and partners,” says John Mark Ramsey, CEO of the REIT and managing member of Sentio Investments, its external advisor, which is not included in the acquisition by KAREA. “This has resulted in very attractive investment results for the SHP shareholders, which we expect to continue to deliver for future investors with Sentio Investments. We are confident that KAREA will continue to provide industry leading service and care in the communities.”
KKR first invested in Sentio in 2013 with a $150-million equity commitment. “We have been fortunate for the opportunity to support John Mark and his impressive team at Sentio over the last four years, and we are proud of the results,” says KKR member Billy Butcher.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
