ING Real Estate Community Living Group (ILF) announced it has entered into a conditional contract to sell its interests in the New York Seniors (Bristal) portfolio to a property consortium for approximately US$173.3 million. The December 2011 internal property value was US$163.7 million. The purchasing consortium comprises affiliates of Harrison Street Real Estate Capital LLC, a real estate investment management firm, and The Engel Burman Group, the current operator and manager of the portfolio. The sale price is in-line with the price paid to acquire the portfolio across 2007 and 2008.
ILF CEO Simon Owen said: “This transaction has been some nine months in the making as we sought to capture maximum value for this premium portfolio of assets. The key to unlocking the maximum value was working with our joint venture partner in the United States, Chartwell REIT, to sell our collective interest in the asset through a joint process.” The US$173.3 million sale price equates to a 2.1¢ per unit uplift when compared to the US$163.7 million value ascribed to this portfolio in ILF’s 31 December 2011 financial statements.
Net proceeds from the sale are expected to be approximately A$49.9 million, of which it is expected that A$44.6 million will be repatriated on settlement. A$5.3 million will remain in the US under transaction related escrows for up to nine months.
ING Real Estate Community Living Group (ILF) is a stapled group comprising two externally managed ASX-listed real estate investment trust that own, manage and develop a diversified portfolio of seniors housing communities.