Brookdale Senior Living News by Bernie Reifkind

Posted by admin on October 9, 2009


Health Care Recruiter News:

Sunrise Senior Living Inc. has agreed to sell one of its senior housing communities in Colorado to Brookdale Senior Living Inc. as part of a 21-facility nationwide sale.

The move is a step in McLean, Va.-based Sunrise’s reorganization efforts.

Nashville-based Brookdale (NYSE: BKD) said it will pay $204 million plus costs in the deal, which transfers 1,389 housing units in 11 states to the company. It currently operates 546 communities in 35 states, including 26 in Colorado, according to its website.

An announcement of the deal did not say which of Sunrise’s Colorado properties is to be sold. Its website lists 11 facilities in the state.

Sunrise (NYSE: SRZ) said that it expects to receive about $60 million in proceeds from the 21-facility transaction and will use some of it to pay down balances owed on its bank line of credit with the remainder becoming additional working capital. Closing of the transaction is currently scheduled for Nov. 16.

Sunrise expects to record an impairment charge of about $7 million in the third quarter of 2009 to write down five of the 21 communities to fair value. The company expects to record a gain on the sale of real estate of about $50 million upon closing of the transaction.

Sunrise has lost money for the last 2-1/2 years. In its latest quarter, it posted an $82 million loss on declining revenue of $381 million.

Sunrise has taken several steps to turn its operations around, announcing job cuts of at least 150 employees in May and more recently downsizing its headquarters space.

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