Sunrise Announces Development Agreement With The Carlyle Group


Monday, November 10, 2003 8:08 am EST



Public Company Information:

"We are pleased to be partnering with Carlyle and believe continued investments by sophisticated capital sources reflect our abilities as an operator and the solid long-term fundamentals of the senior care industry"

Sunrise Senior Living, Inc. (NYSE: SRZ), today announced that it has entered into an agreement with affiliates of The Carlyle Group ("Carlyle"), a global private equity investment firm, to develop two senior living communities in the United States (one in California and one in Illinois) with a resident capacity of 167, both of which are currently under construction.

Carlyle will own 75 percent of the newly developed communities and Sunrise will own 25 percent and will operate the communities under long-term management contracts. Development costs of approximately $40 million will be funded through contributions by each partner based on its percentage interest (total contributed equity of approximately $10 million), with the balance funded by construction loans provided by third-party lenders. Pursuant to the terms of the agreement, Sunrise will be reimbursed approximately $9 million for development expenses incurred on the properties.

"We are pleased to be partnering with Carlyle and believe continued investments by sophisticated capital sources reflect our abilities as an operator and the solid long-term fundamentals of the senior care industry," said Paul Klaassen, Sunrise Senior Living chairman and CEO. "This agreement will allow us to recoup the majority of our capital invested in these developments, resulting in debt reduction, cash proceeds and most importantly a stream of revenues based on long-term management contracts."

"Our investment will allow us to benefit from the improving demographics in the 75+ year-old age cohort and the positive supply and demand fundamentals in each market," said Robert Stuckey, a Managing Director with The Carlyle Group and head of the U.S. team. "By partnering with an industry leader, we believe the success of our investment is greatly enhanced and we look forward to a rewarding long-term relationship with Sunrise. This is our second investment in the sector in the past 60 days and we look forward to finding similar opportunities in the near-term."

Sunrise Senior Living is the nation's largest provider of senior living services. The McLean, Va.- based Company, which employs more than 30,000 people, has over 360 senior living communities either open or under construction in the United States, United Kingdom and Canada with a combined resident capacity of more than 40,000. Sunrise communities offer a full range of personalized senior living services, from independent living, to assisted living, to care for individuals with Alzheimer's and other forms of memory loss and 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.

The Carlyle Group is a global private equity firm with more than $16.2 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven, and disciplined approach. Carlyle invests in buyouts, venture, real estate, high yield, and turnarounds in North America, Europe, and Asia, focusing on aerospace & defense, automotive, consumer & industrial, energy & power, healthcare, technology & business services, telecommunications & media, and transportation. Since 1987, the firm has invested $9.2 billion of equity in 295 transactions. The Carlyle Group employs more than 500 people in 12 countries. Visit for additional information.

Certain 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. Risks that could cause actual results to differ materially from Sunrise expectations 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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Sunrise Senior Living, Inc.
Jamison Gosselin
manager, External Communications
Charles A. Post
SVP-Corporate Strategy and Capital Markets

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