Health & Fitness
Emeritus Announces Intent to Lease 26 Senior Living Communities
SEATTLE--([ BUSINESS WIRE ])--Emeritus Corporation (NYSE: ESC), a national provider of assisted living and memory care services to seniors, today announced that it has entered into a non-binding letter of intent with affiliates of HCP, Inc. (NYSE: HCP) to lease 26 senior living communities. The communities are located in 13 states and consist of approximately 3,080 units, comprised of 1,931 assisted living, 607 memory care, 405 skilled nursing and 137 independent living units.
The terms of the letter of intent provide for an initial term of 15 years with two available extension options of 10 years each. The lease agreements are expected to contain purchase options on 10 of the communities, exercisable beginning in year 11 and extending through the remaining term of the leases. The transaction is subject to several customary closing conditions that include, among others, a due diligence review period and licensing and transition requirements. The transaction is expected to be finalized during the fourth quarter of 2010.
Mr. Dan Baty, Chairman and Co-CEO, stated, aWe are very pleased with the anticipated addition of these 26 high quality communities to our portfolio, and our continuing relationship with HCP. These communities further our growth strategy in markets where we currently operate and will fit nicely into our existing infrastructure and, additionally, represent a significant opportunity to create value for both HCP and Emeritus.a
About Emeritus
Emeritus Corporation is a national provider of assisted living and memory care services to seniors. Emeritus is one of the largest and most experienced operators of freestanding assisted living communities located throughout the United States. These communities provide a residential housing alternative for senior citizens who need assistance with the activities of daily living, with an emphasis on personal care services, which provides support to the residents in the aging process. Emeritus currently operates 460 communities in 44 states representing capacity for approximately 39,000 units and approximately 45,000 residents, including the recent Sunwest acquisition of managed communities. Additional information about the Company can be located on the Internet at [ www.emeritus.com ].
aSafe Harbora Statement under the Private Securities Litigation Reform Act of 1995:A number of the matters and subject areas discussed in this report that are not historical or current facts deal with potential future circumstances, operations, and prospects.The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from our actual future experience as a result of such factors as the entry into definitive agreements and the closing of the transaction contemplated herein and our ability to successfully incorporate the new communities into our existing infrastructure.Differences may also result from actions taken by HCP, as well as from risks and uncertainties beyond the control of Emeritus, including those relating to HCP.We have attempted to identify, in context, certain of the factors that we currently believe may cause actual future experience and results to differ from our current expectations regarding the relevant matter or subject area.These and other risks and uncertainties are detailed in our reports filed with the Securities and Exchange Commission, including aItem 1A. Risk Factorsa in our Annual Report on Form 10-K for the year ended December 31, 2009 and any subsequent Quarterly Report on Form 10-Q.The Company undertakes no obligation to update the information provided herein.
