Emeritus Senior Living Announces Closing of Joint Venture Asset Sale
Emeritus Corporation (NYSE: ESC) (“Emeritus” or the “Company”), the nation's largest provider of assisted living and memory care services, today announced that HCP, Inc. (NYSE: HCP) (“HCP”) closed the acquisition of 127 of the 133 senior housing communities that Emeritus had previously announced were to be acquired by HCP from a joint venture between Emeritus, affiliates of Blackstone Real Estate Partners VI (“Blackstone”), certain former tenants-in-common, and a Columbia Pacific investment fund affiliated with Dan Baty, the Chairman of Emeritus (the “Blackstone JV”). As a result of the transaction, Emeritus will operate the communities as part of its consolidated portfolio, by virtue of a triple-net lease with HCP.
Concurrent with the closing, Emeritus purchased nine remaining properties from the Blackstone JV, for which HCP provided secured debt financing.
“Executing this transaction efficiently and ahead of schedule reflects the best-of-class operational skills and expertise of the Emeritus team,” noted Granger Cobb, the Company's President and Chief Executive Officer. “It is also a tribute to the relationships that we enjoy with our financial partners.”
The closing of the remaining six Blackstone JV communities is subject to customary closing conditions for an acquisition of this nature, including regulatory approvals, and is expected to be completed in the fourth quarter of 2012. Additional information with respect to the transaction, including the use of proceeds, will be provided in the Emeritus third quarter 2012 earnings release conference call that is scheduled for November 5, 2012.
About Emeritus Corporation
Emeritus Corporation is the nation's largest assisted living and memory care provider with capacity to serve nearly 50,000 residents. More than 28,000 employees support more than 470 communities throughout 44 states coast to coast. Emeritus offers the spectrum of senior residential choices, care options and life enrichment programs that fulfill individual needs and promote purposeful living throughout the aging process. Its experts provide insights on senior living, care, wellness, brain health, caregiving and family topics at www.emeritus.com, which also offers details on the organization's services. Emeritus' common stock is traded on the New York Stock Exchange under the symbol ESC.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: A number of the matters and subject areas discussed in this report that are not historical or current facts deal with potential future circumstances, operations, and prospects. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from our actual future experience as a result of such factors as the satisfaction of the conditions to the closing of the remaining communities in the transaction, including obtaining and maintaining required regulatory approvals, and the occurrence of any event, change or other circumstances that could give rise to the termination of the purchase and sale agreement relating to the remaining communities. We have attempted to identify, in context, certain of the factors that we currently believe may cause actual future experience and results to differ from our current expectations regarding the relevant matter or subject area. These and other risks and uncertainties are detailed in our reports filed with the Securities and Exchange Commission, including “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC. The Company undertakes no obligation to update the information provided herein.