Senior Housing Properties Trust (SNH) has reached agreements for early terminations of leases for 10 senior living communities now operated by Sunrise Senior Living, Inc. (SRZ). As and after appropriate regulatory approvals are obtained, SNH expects to lease these communities to its wholly owned taxable REIT units and the communities would be managed by Five Star Quality Care Inc. (FVE).
On December 30, 2011, SNH announced that Sunrise notified SNH that it would not renew these 10 leases when the current terms end on December 31, 2013. Sunrise's obligations under these leases are guaranteed by Marriott International, Inc. (MAR), the former tenant of the 10 communities, and the renewal of these leases required MAR's approval. Today's deal would accelerate the terminations of these leases and the transfers of these operations from Sunrise to SNH's TRSs. Also, SNH would buy the inventory and certain improvements owned by Sunrise at these communities for a total of $1 million.
For comments and feedback: editorial@rttnews.com