Blackstone JV buys assisted living portfolio.SEATTLE, WA: Emeritus Corporation, a national provider of assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and related services to senior citizens, announced that it has agreed to enter into a Joint Venture Agreement with Blackstone Real Estate Partners to acquire a portfolio of twenty-five assisted living and Alzheimer's/dementia care communities, along with one skilled nursing facility skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. , for a purchase price of $190.0 million, plus transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . The portfolio consists of 1,990 units. As part of the joint venture, Emeritus will acquire a 19% interest in the venture for approximately $7.0 million and will manage the properties for a fee of 5% of revenue. The Joint Venture Agreement will also provide Emeritus with certain rights to purchase the properties and also provides for performance incentives. Financing is being provided by GE Healthcare Financial. "We are pleased to be partnering with Blackstone on this transaction. We believe there is tremendous upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar in this portfolio that we can realize over time and which also provides us the opportunity to leverage our existing management infrastructure," stated Emeritus's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Dan Baty. |
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