 |
|
Benchmark Assisted Living Announces $148 Million
Recapitalization
-Top Performing Regional Provider Attracts
Global Attention in New 11-Property Partnership with International
Investor the Kuwait Finance House -
Wellesley Hills, MA (October 5, 2004) – Benchmark Assisted
Living announced today that it has completed the first phase of a $148
million recapitalization of its longest held portfolio. This brings the
11-property portfolio full cycle, realizing exceptional returns for its
original partner, AEW Capital Management, investing on behalf of AEW
Partners II, a real estate opportunity fund. Benchmark, which has long
been recognized for attracting top flight institutional investors from
the domestic capital market, has now achieved global recognition by
attracting the interest and the investment of a high profile
international investor, Kuwait Finance House.
“This is a substantial new stage for Benchmark Assisted Living. By
completing this recapitalization, Benchmark has delivered excellent
returns for its investors and now can prosper and grow to the next level
with the support of KFH, a major international core investor,” said Tom
Grape, Benchmark founder, chairman and CEO.
KFH is one of the fastest growing, highly respected financial
institutions in the world. The company has more than $11.5 billion in
assets with global real estate holdings in the United States, Europe and
the Middle East. KFH’s partners and clients include Citigroup, Airbus
and Chicago’s First Industrial Realty Trust. KFH’s portfolio includes
more than $3 billion of U.S. real estate investment.
“Benchmark’s reputation as one of the best operators in the country was
certainly attractive to KFH. The company’s ability to deliver
consistently high operating results and current cash flow were equally
important,” said Dick Layman of Legg Mason Real Estate Services, KFH’s
investment advisor.
“New England has several of the most attractive senior housing markets
in the country. Benchmark’s dominance in this region has allowed them to
excel and become a model of success for senior housing companies across
the United States,” said Ali O. Al-Ghannam of KFH’s International Real
Estate Department. “Their success at maximizing occupancy and revenue
attracted our attention, and we are pleased to help Benchmark build on
this excellent foundation for even greater future success.”
AEW Capital Management was Benchmark’s initial investor. The two formed
a joint venture in 1997 to acquire these 11 properties, totaling 756
units, located in Massachusetts, Connecticut, Rhode Island, New
Hampshire, Maine and Vermont.
“We have had a great relationship with Benchmark Assisted Living,” said
Marc Davidson, principal and head of AEW’s Partners Group. “AEW has an
investment expertise in the senior housing sector, and in 1997, when we
began our relationship with Benchmark, we were looking for a
partner/operator with considerable potential for growth. Tom Grape and
the Benchmark team were one of the strongest in the industry. Their
performance and capabilities as a company have enabled AEW to deliver
strong returns to our investors.”
Benchmark has closed on eight of the 11 properties representing
approximately $117 million in investment. The remaining three properties
in New Hampshire and Maine will close following the completion of state
licensing procedures.
Benchmark is one of the fastest growing assisted living companies in the
country. This recapitalization comes on the heels of another sizeable
transaction. On September 28, Benchmark announced that it is buying
Village Retirement in one of the largest acquisitions in the senior
living industry. The purchase increases the company’s units by 60
percent. In addition to their national reputation for exceptional
operational capabilities and premium real estate assets, Benchmark is
regarded as a national leader in quality initiatives for both residents
and employees.
Legg Mason Real Estate Services served as the investment advisor to KFH
for this transaction. GMAC Commercial Mortgage, a major lender in the
senior living sector, provided $105 million for Benchmark’s asset
acquisition. KFH participated in the deal through an Ijara lease
structure.
###
About Benchmark Assisted Living
Benchmark Assisted Living is the largest assisted living company in New
England and one of the top 10 in the nation. The Wellesley Hills-based
company was founded in 1997 and has more than doubled in size in the
last four years. Known for exceptional resident satisfaction, the
privately-held company owns and operates 33 properties, representing
more than 3,000 assisted living, independent living and Alzheimer’s
units. For more information about Benchmark, visit the Web site at
www.benchmarkquality.com.
About KFH
Kuwait Finance House is a publicly traded Kuwait-based financial
institution with over $11.5 billion in assets and a global investor with
real estate holdings in the U.S., Europe and the Middle East. KFH is the
second largest bank in Kuwait in terms of assets and market
capitalization and has strong affiliations with leading international
institutions and has successfully launched a number of products in
alliance with major global banks in the past. KFH holds an investment
credit rating of 'A2' by Moody's, 'A-' by Fitch, and 'A-' by Standard
and Poor's rating agencies. KFH is listed on the Kuwait Stock Exchange (KSE)
under the symbol KFIN.
www.kfh.com
About LMRES
Legg Mason Real Estate Services ("LMRES") provides investment
opportunities in both equity and debt real estate markets. LMRES is a
full-service real estate investment manager and advisor, providing
acquisition, asset and portfolio management and disposition services.
Assets under management as of June 30, 2004, totaled $1.6 billion. LMRES
invests on behalf of its clients, across numerous geographic regions and
property types. LMRES' clients include public pension funds, insurance
companies, high net worth individuals, foreign investors and
Taft-Hartley Plans.
www.lmres.com
About AEW Capital Management
AEW Capital Management, L.P., provides investment advisory services to
institutions and other owners of commercial properties and portfolios,
focusing on directly held real estate assets, real estate securities,
high-return private equity real estate and international investment.
Among AEW's clients are some of the largest U.S. corporate, public and
union pension funds, university endowments, and governmental entities.
AEW and its affiliates currently manage approximately $18.2 billion of
capital, which is invested in over $25 billion of real estate and
securities in the U.S., Canada and Europe. AEW has offices in Boston,
Los Angeles, Washington DC, Paris and London.
www.aew.com
The AEW Partners Funds are a series of real estate private equity
investment partnerships targeted toward investors who seek to achieve
high risk-adjusted returns. The most recent fund, AEW Partners V, is
currently being marketed.
<< Back
|
|
|
