MCLEAN, Va., Jan. 14 /PRNewswire-FirstCall/ -- Sunrise Senior Living, Inc. , today announced that it has secured an increase in equity development funding for its United Kingdom (UK) joint venture with an affiliate of Prudential Real Estate Investors that will provide for, in conjunction with loans provided by third-party lenders, total development funding for this venture of approximately $864.2 million (462.5 million pounds Sterling). This represents a $467.1 million (250.0 million pounds), or 118 percent increase over the venture's initial capital structure, which was announced in May 2002. The Sunrise and Prudential UK joint venture currently has eight sites under development in the UK, four of which are under construction with final planning approval received on an additional four. All of these properties will be managed by Sunrise under long-term management agreements. Sunrise also currently operates three properties it previously developed in the UK and has an additional two under construction through other ventures. This increase in development capital will allow Sunrise to increase its development program in the UK and further expand its UK management business.
The increased equity capital commitment comes from two external institutional investors sourced by Prudential Real Estate Investors' (PREI) UK-based Global Merchant Banking business in light of the successful initial development of Sunrise communities in the UK. PREI is the real estate investment and advisory business of Prudential Financial, Inc. . In connection with this additional equity investment in the venture, Sunrise has agreed to increase its funding commitment for the UK venture by $18.7 million (10.0 million pounds), to approximately $34.6 million (18.5 million pounds), maintaining Sunrise's 20 percent equity interest in the venture.
"We are very happy with our operating and development results in the UK and look forward to our expanded relationship with these partners to build more communities and serve more seniors in the UK," said Thomas Newell, Sunrise Senior Living president. "There is a strong demand for quality senior living alternatives in the UK and we are excited to extend our resident- centered model of care and service to help meet that need."
A separate joint venture between Sunrise and PREI-Europe, focused on development in Germany, has five sites contracted and under development in that country, of which four now have planning approval and are under construction with the first home in Klein Flottbek, Hamburg opening later this month. In addition a further three sites are under negotiation.
Sunrise Senior Living is the nation's largest provider of senior living services. The McLean, Va.-based Company employs more than 35,000 people. As of December 31, 2004, Sunrise operates 381 communities that are open in the United States, United Kingdom and Canada with a combined capacity for approximately 43,000 residents. Sunrise also has 32 communities under construction in these countries as well as Germany, with a combined capacity for approximately 2,900 residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as home care, nursing and rehabilitative care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise please visit http://www.sunriseseniorliving.com/.
PREI provides global real estate investment management services in the United States, Europe, Asia and Latin America. PREI managed total assets of $22.9 billion on behalf of more than 350 clients as of September 30, 2004; net assets under management (i.e., after deduction of associated debt and liabilities) were $15.4 billion. For more information, visit http://www.prei.com/.
Certain matters discussed in this press release may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward- looking statements are based on reasonable assumptions, there can be no assurances that its expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, development and construction risks, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, market factors that could affect the value of the Company's properties, the risks of downturns in economic conditions generally, satisfaction of closing conditions and availability of financing for development and acquisitions. These and other risks are detailed in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Sunrise Senior Living, Inc.
The increased equity capital commitment comes from two external institutional investors sourced by Prudential Real Estate Investors' (PREI) UK-based Global Merchant Banking business in light of the successful initial development of Sunrise communities in the UK. PREI is the real estate investment and advisory business of Prudential Financial, Inc. . In connection with this additional equity investment in the venture, Sunrise has agreed to increase its funding commitment for the UK venture by $18.7 million (10.0 million pounds), to approximately $34.6 million (18.5 million pounds), maintaining Sunrise's 20 percent equity interest in the venture.
"We are very happy with our operating and development results in the UK and look forward to our expanded relationship with these partners to build more communities and serve more seniors in the UK," said Thomas Newell, Sunrise Senior Living president. "There is a strong demand for quality senior living alternatives in the UK and we are excited to extend our resident- centered model of care and service to help meet that need."
A separate joint venture between Sunrise and PREI-Europe, focused on development in Germany, has five sites contracted and under development in that country, of which four now have planning approval and are under construction with the first home in Klein Flottbek, Hamburg opening later this month. In addition a further three sites are under negotiation.
Sunrise Senior Living is the nation's largest provider of senior living services. The McLean, Va.-based Company employs more than 35,000 people. As of December 31, 2004, Sunrise operates 381 communities that are open in the United States, United Kingdom and Canada with a combined capacity for approximately 43,000 residents. Sunrise also has 32 communities under construction in these countries as well as Germany, with a combined capacity for approximately 2,900 residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as home care, nursing and rehabilitative care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise please visit http://www.sunriseseniorliving.com/.
PREI provides global real estate investment management services in the United States, Europe, Asia and Latin America. PREI managed total assets of $22.9 billion on behalf of more than 350 clients as of September 30, 2004; net assets under management (i.e., after deduction of associated debt and liabilities) were $15.4 billion. For more information, visit http://www.prei.com/.
Certain matters discussed in this press release may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward- looking statements are based on reasonable assumptions, there can be no assurances that its expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, development and construction risks, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, market factors that could affect the value of the Company's properties, the risks of downturns in economic conditions generally, satisfaction of closing conditions and availability of financing for development and acquisitions. These and other risks are detailed in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Sunrise Senior Living, Inc.
