Morgan Stanley Real Estate announced on Monday that it has established a joint venture in the UK with Sunrise Senior Living, one of the world's largest assisted living facilities operators. The joint venture has committed to acquire and operate 15 assisted living communities totaling 1,244 units across the UK, for $1.1 bn (EUR 797 mln).
Morgan Stanley Real Estate announced on Monday that it has established a joint venture in the UK with Sunrise Senior Living, one of the world's largest assisted living facilities operators. The joint venture has committed to acquire and operate 15 assisted living communities totaling 1,244 units across the UK, for $1.1 bn (EUR 797 mln).
The 15 communities were developed or are under development by Sunrise in partnership with institutional investors advised by Pramerica Real Estate Investors and comprise a mix of facilities that are currently operational or under development. Morgan Stanley Real Estate will own 90% of the new venture, with the remaining 10% being retained by Sunrise, which will operate the communities under 30-year management agreements. The debt funding for the transaction was provided by Bank of Scotland Corporate. This is Morgan Stanley Real Estate's first investment in the assisted living market in the UK and provides a strong platform for expansion in this asset class in Europe.
Toby Phelps, Morgan Stanley Real Estate's Head of UK Investing, said: 'This exciting acquisition is a further step in our strategy of investing alongside best-in-class operators in key growth markets in the UK. Sunrise is the stand-out leader in the assisted living market and has created a portfolio of high-class communities that are well placed to capture the increasing demand for high quality elderly care in the UK.'
