Retirement News : Seniors : Sunrise Senior Living Completes Greystone Communities Acquisition

Sunrise Senior Living Completes Greystone Communities Acquisition

Date Added: 11-05-2005

Sunrise Senior Living, Inc.
(NYSE: SRZ), today announced that it has completed the acquisition of
privately held Greystone Communities, Inc.  Through the acquisition of
Greystone, a premier developer and manager of Continuing Care Retirement
Communities (CCRCs), Sunrise will be expanding into the largest segment of the
CCRC industry -- the not-for-profit sector.  The acquisition of Greystone will
include management of 14 operating CCRCs (capacity for over 4,000 residents),
pre-opening and ongoing management of an additional 17 communities (capacity
for 4,000 additional residents) that Greystone has under development for not-
for-profit owners, as well as various other consulting and marketing
agreements.  Sunrise will not acquire any real estate in this transaction, as
these CCRCs are all owned by not-for-profit entities.
    "We are thrilled to be adding a group of highly talented and enthusiastic
team members to our organization," said Paul Klaassen, chairman and CEO of
Sunrise Senior Living.  "We also are excited by the growth Greystone adds to
our portfolio.  When combining the Greystone acquisition and the pending
Fountains acquisition, which is expected to close in mid-2005, with the
resident capacity from our 33 communities currently under construction, our
resident capacity is expected to grow by over 25 percent within the next
year."
    Under the terms of the agreement, Sunrise paid approximately $45 million
in cash for Greystone and incurred approximately $1 million in transaction
costs.  Sunrise also may pay up to an additional $7.5 million if Greystone
meets certain performance milestones in 2005, 2006 and 2007 for a total
potential purchase price of $52.5 million, plus transaction costs, subject to
various adjustments set forth in the acquisition agreement.  Sunrise funded
the acquisition through its existing cash balances and corporate credit
facility.
    Sunrise expects to incur approximately $1 million in one-time transition
expenses in 2005 related to the Greystone acquisition, but still believes the
transaction will be slightly accretive in 2005 with additional accretion in
2006.

    Sunrise Senior Living is the nation's largest provider of senior living
services.  The McLean, Va.-based Company employs more than 35,000 people.  As
of March 31, 2005, Sunrise operated 384 communities in the United States,
Canada, Germany and the United Kingdom with a combined capacity for more than
43,600 residents.  Sunrise also had 33 communities under construction in these
countries with a combined capacity for approximately 3,100 residents.  Sunrise
offers a full range of personalized senior living services, including
independent living, assisted living, care for individuals with Alzheimer's and
other forms of memory loss, as well as nursing and rehabilitative care.
Sunrise's senior living services are delivered by staff trained to encourage
the independence, preserve the dignity, enable freedom of choice and protect
the privacy of residents.  To learn more about Sunrise please visit
http://www.sunriseseniorliving.com.

    Estimates of future earnings are by definition, and certain other matters
discussed in this press release may be, forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.  Although
Sunrise believes the expectations reflected in such forward-looking statements
are based on reasonable assumptions, there can be no assurances that its
expectations will be realized.  Sunrise's actual results could differ
materially from those anticipated in these forward-looking statements as a
result of various factors, including, but not limited to, our ability to
successfully complete The Fountains and Greystone transactions and integrate
them into our operations, development and construction risks, acquisition
risks, licensing risks, business conditions, competition, changes in interest
rates, our ability to manage our expenses, market factors that could affect
the value of our properties, the risks of downturns in general economic
conditions, satisfaction of closing conditions and availability of financing
for development and acquisitions.  These and other risks are detailed in the
Company's annual report on Form 10-K filed with the Securities and Exchange
Commission.  The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.

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