NEW YORK -- (Business Wire)
New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:
SNR) announced today that it has completed the previously announced
acquisition of 17 private pay, independent living senior housing
properties from affiliates of Hawthorn Retirement Group for
approximately $435 million (the “Hawthorn Acquisition”). The portfolio
is 100% private pay, contains 2,082 units located across 10 states and
had an average occupancy rate of 92.6% for February 2015. The portfolio
will be operated by Holiday Retirement, and the Company expects the
portfolio to generate an NOI yield of approximately 6.3%. The
acquisition was funded with cash on hand and proceeds from a first
mortgage loan.
The Company also completed a $670 million first mortgage loan (the
“Loan”) secured by 52 senior housing properties with Freddie Mac through
Walker & Dunlop. The Loan bears interest at LIBOR + 234bps and has a
seven year maturity. Proceeds from the Loan were used to refinance
existing floating rate debt and to fund acquisitions, including the
Hawthorn Acquisition.
”We are excited to add to our portfolio this collection of high-quality,
independent living senior housing assets, which will further increase
our private pay exposure,” New Senior Chief Executive Officer Susan
Givens said. “With an average asset age of seven years and strong
occupancy of 92.6%, we expect continued strong growth from this
portfolio. In addition, we continue to make progress toward improving
our capital structure with New Senior’s $670 million financing with
Freddie Mac. The financing was executed at a very attractive rate and
lowers the financing cost on our existing debt while also providing
attractive financing terms for our new acquisitions.”
ABOUT NEW SENIOR
New Senior is a real estate investment trust focused on investing in
senior housing properties across the United States. The Company is one
of the largest owners of senior housing properties and currently owns
121 properties in 31 states. New Senior is managed by an affiliate of
Fortress Investment Group LLC, a global investment management firm. More
information about New Senior can be found at www.newseniorinv.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain items in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements regarding the expected NOI yield
and continued growth of the Hawthorn Acquisition. These statements are
not historical facts. They represent management’s current expectations
regarding future events and are subject to a number of trends and
uncertainties, many of which are beyond our control, that could cause
actual results to differ materially from those described in the
forward-looking statements. Accordingly, you should not place undue
reliance on any forward-looking statements contained herein. For a
discussion of some of the risks and important factors that could affect
such forward-looking statements, see the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s Annual Report on
Form 10-K, which is available on the Company’s website (www.newseniorinv.com).
New risks and uncertainties emerge from time to time, and it is not
possible for New Senior to predict or assess the impact of every factor
that may cause its actual results to differ from those contained in any
forward-looking statements. Forward-looking statements contained herein
speak only as of the date of this press release, and New Senior
expressly disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect
any change in New Senior's expectations with regard thereto or change in
events, conditions or circumstances on which any statement is based.
Contacts:
New Senior Investment Group Inc.
Investor Relations:
David
Smith, 212-479-3140
Source: New Senior Investment Group Inc.
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