Seniors Housing Business

JUL 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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Page 13 of 40 13 July 2018 n Seniors Housing Business Colliers to acquire 75 percent stake in Harrison Street for $450 million Toronto and Chicago — In an ef- fort to expand its global investment management platform, Colliers In- ternational Group Inc. (NASDAQ: CIGI) has agreed to acquire 75 per- cent of Harrison Street Real Estate Capital LLC for $450 million. Under the terms of the transac- tion, which is expected to close during the third quarter, the se- nior management team of Harri- son Street will hold the remaining 25 percent of equity. An additional $100 million will be payable to Har- rison Street in 2022 based on the achievement certain performance targets. Chicago-based Harrison Street currently manages about $14.6 bil- lion worth of assets, primarily in the seniors housing, student hous- ing, medical office and self-storage sectors. The company's senior management team will continue to handle its day-to-day operations. No changes to the company name have been announced at this time. According to CEO Christopher Merrill, Harrison Street was seek- ing an outside investment partner to assist with its global positioning strategy. Harrison Street was drawn to the depth of Colliers' relation- ships on a global scale, as well as the brokerage firm's decentralized management style and track record in investment sales. For its part, Toronto-based Col- liers was in the market for a new platform that would enable global investment growth. The company expects the annual management fee revenue to be between $100 mil- lion and $115 million. Acquisitions MBK to acquire nine-property portfolio in West for $382 million Irvine, Calif. — MBK Real Estate has agreed to acquire a nine-prop- erty seniors housing portfolio in California, Washington and Arizona for $382 million. The Irvine-based investor is a subsidiary of Tokyo-based Mitsui & Co., and the parent company of MBK Senior Living. The seller is West Living LLC, a California-based owner-operator. Although the specific properties were not disclosed, West Living only lists 10 prop- erties on its website. The portfolio totals 1,200 units and features an annual combined net operating income of $21 million. MBK plans to implement reno- vations to the properties. MBK already owns a portfolio of 25 properties totaling 2,600 units, also all geographically centered in the West. The Bellettini is a West Living-operated community in Bellevue, Wash. Although the specific properties involved in the transaction were not disclosed, The Bellettini is the only West Living property in Washington. Be sure your capital partner is there for you, both before and after you close the deal … visit us @ Eastern Region Lawrence Brin (301) 841-6484 Central Region David Sharp (312) 488-4524 Western Region Jason McMeen (312) 288-8603 FHA Group Head Brett Patrick (303) 757-2148

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