Sunwest Management and Blackstone Real Estate Advisors accomplish major agreement

It has been learnt that an imperative agreement has been accomplished by the collaborative effort of Sunwest Management (Sunwest) and Blackstone Real Estate Advisors (Blackstone) on the terms of sale of up to 148 senior living properties controlled and managed by Sunwest. It is to be noted while Sunwest Management is an Oregon-based senior living provider, Blackstone Real Estate Advisors is a real estate private equity firm.

As per the preliminary agreement between Blackstone and Sunwest, Sunwest would go on with the plan of distribution presently pending before the U.S. District Court in Eugene, Ore., in the lawsuit filed last March by the Securities and Exchange Commission (SEC). It is for the court to consider the receivership plan at the end of this month. If it approves that plan, the court would subsequently consider the Blackstone transaction in conjunction with Sunwest`s reorganization in Chapter 11 towards the end of this year.

Blackstone, in the context o making offer, is partnering with Emeritus Senior Living, one of the nation`s largest senior living providers managing 309 communities in 36 states, and Columbia Pacific Management, Inc., an entity controlled by Dan Baty, Chairman and Co-CEO of Emeritus. Under the terms of the proposal, Emeritus would be appointed as manager of the newly-acquired facilities once the transaction is complete. Emeritus will also have the option to invest up to 10% of the equity in the joint venture entity along with Blackstone and Columbia Pacific.

“This purchase offer by Blackstone, one of the world`s premier private equity firms, validates the hard work of a lot of people,” said CRO Clyde Hamstreet. “It recognizes the effort and dedication of our employees and the quality care and services they provide to our residents. And it recognizes the major strides we have taken in the past ten months to preserve and build value for Sunwest`s investors and creditors.”

“This is a very positive development and I am pleased that the investors may have a chance to obtain cash fairly quickly,” said Receiver Michael Grassmueck. “This transaction, if concluded, combined with other sources of recovery, will make a very meaningful distribution to investors and creditors in this case.”

“On March 1, most of us were facing the complete loss of our investments,” said Bill Bryan, a Sunwest investor and chairman of the court-appointed Management Committee. “Today, we all have a good shot at getting a significant part of our money back, soon and in cash. Judge Hogan made it possible with his sense of fairness and tremendous resolve. We investors owe him, Clyde Hamstreet, and all the people who helped get us here a huge debt of gratitude.”