Two major deals equal busy month for Benchmark AL.

Benchmark Assisted Living, one of the nation's largest private assisted living facility operators, got larger after closing out two deals in October totaling more than $300 million.

One of the deals also heralded the entrance of Kuwait Finance House into the long term care field. The $12 billion investment firm from the middle eastern nation debuted in the field after $3 billion in investments toward other U.S. industries.

The $300 million total included one of the AL industry's biggest transactions since 1999. Benchmark's acquisition of nine Village Retirement Community facilities in Connecticut, Rhode Island and Massachusetts for $160 million now accounts for almost 40 percent of the Wellesley, Mass.-based company's resident-unit portfolio. The transaction added 1,160 units, bringing Benchmark's total to 3,000 in 33 facilities throughout New England.

Benchmark followed up the Village Retirement announcement a week later with word that it had completed $148 million recapitalization deal involving its oldest portfolio, an 11property, 756-unit venture in six northeastern states.

"It hasn't been dull," said Thomas Grape, Benchmark's chief executive and chairperson. "We're quite pleased with where we are at."

Grape said the company officially took over the Village Retirement facilities in early November. The deal, in the works for a year, was announced in October.

"We were pleased with the deal we were able to negotiate," Grape said. "These properties are in states that we're already in, with markets we already know, if you're going to bite off a significant transaction, doing it in your backyard simplifies it enormously."

Village Retirement's owners, Peter and Diane Sangermano, retained ownership of the original Rhode Island facility they opened in 1990, Grape said. He added that Benchmark plans to keep all existing staff and add approximately 20 managers.

Benchmark President John Hopkins said the acquisition would allow the company "to grow prudently and strategically."

In the recapitalization effort, Benchmark struck a deal with international investment firm Kuwait Finance House. "New England has several of the most attractive senior housing markets in the country," said KFH International Real Estate Development Director All O. Al-Ghannam in a statement. "(Benchmark's) success at maximizing occupancy and revenue attracted our attention, and we are pleased to help Benchmark build on this excellent foundation for even greater future success."

KFH, the second-largest bank in Kuwait, effectively replaces AEW Capital Management, which formed a joint venture with Benchmark in 1997 to acquire the 11 properties in Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont, according to Grape.

"Nothing's really changed for us[' Grape said. "We're still the owner, as we were before. The properties are the same properties and we're still the manager all around."

AEW Principal Mark Davidson said his company had a "great relationship" with Benchmark, one that ultimately resulted in strong returns to its investors.

Bob Kramer, president of the National Investment Center for the Seniors Housing & Care Industries, said the KFH deal illustrated exactly how good investment practices can benefit the long term care industry. "There's a spillover effect here in terms of these deals happening;' he said. "Kuwait Finance House is coming in, which we're excited about. At the same time, AEW and its client, CalPERS, have done very well with this investment and are encouraged to do more within the industry."

The two deals underscored Benchmark's rapid growth in the assisted living sector. In 1998, a year after the company's formation, Benchmark's portfolio consisted of four facilities. Now, as 2004 comes to a close, the company has 33, according to Grape.

Benchmark's portfolio now totals nearly $500 million and the company has annual revenue of $150 million, Grape said. It is the New England region's largest assisted living provider and nation's eighth-largest private AL operator overall.

Grape said he did not expect the company take on a national scope.