Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
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Acquisitions 20 www.seniorshousingbusiness.com Seniors Housing Business n February/March 2017 Japanese tech conglomerate to acquire Fortress Investment Group for $3.3 billion New York City and Tokyo — Soft- Bank Group Corp., a Tokyo-based tech conglomerate, has entered into a definitive merger agreement under which the company will ac- quire equity firm Fortress Invest- ment Group LLC (NYSE: FIG) for approximately $3.3 billion in cash. Fortress is an investor in both in- dependent living giant Holiday Retirement and publicly traded seniors housing REIT New Senior Investment Group. Founded in 1998, Fortress has 1,100 employees and $70.1 billion in assets under management as of Sept. 30, 2016. Private equity funds and permanent capital vehicles, including commercial real estate, comprise about 65 percent of the company's portfolio. "Fortress' excellent track record speaks for itself, and we look for- ward to benefitting from its lead- ership, broad-based expertise and world-class investment platform," says Masayoshi Son, chairman and CEO of SoftBank Group Corp. "For SoftBank, this opportunity will immediately help expand our group capabilities, and, alongside our soon-to-be-established Soft- Bank Vision Fund platform, will ac- celerate our SoftBank 2.0 transfor- mation strategy of bold, disciplined investment and world-class execu- tion to drive sustainable long-term growth," adds Son. SoftBank's global portfolio of companies includes advanced tele- communications, internet services, artificial intelligence, smart robot- ics, clean energy technology and Internet of Things (IoT) providers. Last September, SoftBank acquired ARM Holdings plc, the world's leading semiconductor intellectual property company. In the past three months, Fortress has sold Riverplace Tower, an office tower in downtown Jacksonville, and Revolution Studios, a movie production company that owned the rights of 126 films and 240 TV episodes at the time of sale. For- tress has also recently purchased a portfolio of non-performing Italian loans from UniCredit S.p.A. Fortress's board of directors unanimously approved the Soft- Bank-Fortress merger agreement. The transaction is subject to ap- proval by Fortress shareholders, certain regulatory approvals and other customary closing condi- tions, and is expected to close in the second half of this year. Once the transaction closes, Fortress will no longer be publicly traded on the New York Stock Exchange, accord- ing to a source familiar with the deal. Pete Briger, Wes Edens and Ran- dy Nardone have agreed to con- tinue to lead Fortress, and have committed to invest 50 percent of after-tax proceeds from the trans- action in Fortress-managed funds and vehicles and in equity securi- ties of SoftBank and SoftBank-man- aged funds and vehicles. W W W . M O S S A D A M S . C O M / L T C We've helped hundreds of long-term care communities strengthen their financial operations. Discover how we can make a difference to yours. We protect your future. So you can care for theirs. Certified Public Accountants | Business Consultants Community Preservation Partners acquires 179-unit affordable community in Anaheim for $53.5 million Anaheim, Calif. — Community Preservation Partners (CPP), in a joint venture with Jamboree Housing, has acquired Miracle Terrace Apartments, a 179-unit affordable seniors housing community in the Los Angeles suburb of Anaheim, for $53.5 million. A private owner sold the property. As part of the transaction, the Anaheim Housing Authority will help keep rents below market level. Irvine-based CPP plans to invest $7.4 million in renovations to the property, including new air conditioning units, energy-efficient appliances, water conservation upgrades, improvements to the façade, amenity improvements, and new countertops, cabinets and flooring. Jamboree Housing will provide wellness and mobility services, as well as coordinate services and offer community events. Miracle Terrace Apartments is an affordable seniors housing community in Anaheim. The new owners plan to invest $7.4 million in renovations to the property.