Care Investment Trust LLC ("Care" or the "Company"), a seniors
housing-focused real estate investment and finance subsidiary of Tiptree
Financial Inc. (NASDAQ: TIPT), has formed a joint venture to own and
operate 5 senior housing communities with affiliates of Royal Senior
Care Management ("Royal"), a privately-held owner and operator of senior
housing facilities in the Southeast region of the United States. Care
owns an 80% interest in the joint venture, while affiliates of Royal own
the remaining 20% interest and provide property management services to
the communities under a management contract. Care and Royal expect to
spend approximately $2.7 million in capital expenditures across the
portfolio to enhance and reposition each of the properties. The 282-unit
portfolio acquisition closed on February 9, 2015. In connection with the
acquisition, Care and Royal secured a $22.5 million, 5 year loan, which
includes 36 months of interest only payments and a $2 million earn out
feature provided certain financial hurdles are achieved. The initial
funding amount was approximately $19.9 million and the remaining amount
was held-back at closing to reimburse the borrowers for capital
expenditures.
Salvatore (Torey) V. Riso, Jr., President and Chief Executive Officer of
Care, stated, "Care continues to execute on its business strategy of
partnering with best-in-class regional operators with this acquisition
of five senior housing facilities in South Carolina and Florida. We are
delighted to have closed this first acquisition in partnership with
Royal, and look forward to working closely with their team to add value
to these facilities, as well as others in the future. They are true
professionals that care deeply about providing the best possible
experience for their residents and opportunities for their staff. We
look forward to broadening and deepening our relationship with Royal."
Avi Bittan, Chief Executive Officer of Royal, said, “We are excited to
have closed this first transaction with Care and look forward to the
continued growth of our partnership. The southeastern demographic of
this acquisition, specifically Florida and South Carolina, are a perfect
complement to our existing portfolio where we are quite familiar with
the local laws and customs. We are excited about the value add potential
of these facilities and are anxious to provide a comfortable living
environment for the residents and a place they can call home for years
to come.”
Transaction Highlights:
— Care partners with Royal, a company that now operates 9 seniors
housing facilities in South Carolina and Florida with an additional two
facilities in varying stages of development.
— Care and Royal together acquire 5 senior housing facilities with 282
units in two states.
— Care and Royal plan to enhance the resident experience at the
communities by implementing an extensive capital improvement program, as
well as enhanced programming and services.
About Care Investment Trust LLC
Care Investment Trust LLC is a real estate investment and finance
company that invests in seniors housing and healthcare-related real
estate. Care is a wholly-owned subsidiary of Tiptree Financial Inc.
("Tiptree") (NASDAQ: TIPT), a diversified holding company engaged
through its consolidated subsidiaries in a number of businesses and is
an active acquirer of new businesses. Tiptree, whose operations date
back to 2007, currently has subsidiaries that operate in four industry
segments: insurance and insurance services, specialty finance, asset
management and real estate.
About Royal Senior Care Management
Royal Senior Care Management is dedicated to the senior housing
industry. They are an industry leader in all aspects of senior housing,
including development, acquisition, financing and management. Their
background and their belief of the company's quality of product and
service are some of the reasons for their excellent reputation. Royal
Senior Care's continuum of care also includes senior communities in
Greenville and Lexington, SC, both containing 90 units each. RSC has
developed and is in the process of completing its 25 acre campus in Lake
Mary, FL which will contain 355 units. Its two new hallmark projects
(one in Miami-Dade County and the other in Broward County) will total
339 units.
Cautionary Statement Regarding Forward-Looking Statements
This release contains “forward-looking statements” which involve risks,
uncertainties and contingencies, many of which are beyond the Tiptree’s
control, which may cause actual results, performance, or achievements to
differ materially from anticipated results, performance, or
achievements. All statements contained in this release that are not
clearly historical in nature are forward-looking, and the words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,”
“plan,” “project,” “should,” “target,” “will,” or similar expressions
are intended to identify forward-looking statements. Such
forward-looking statements include, but are not limited to, statements
about the Tiptree’s plans, objectives, expectations and intentions. The
forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties and other factors, many of which are
beyond the Tiptree’s control, are difficult to predict and could cause
actual results to differ materially from those expressed or forecast in
the forward-looking statements. The Tiptree’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
those described in the section entitled “Risk Factors” in the Tiptree’s
Annual Report on Form 10-K, and as described in the Tiptree’s other
filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date of this release. The factors
described therein are not necessarily all of the important factors that
could cause actual results or developments to differ materially from
those expressed in any of the Tiptree’s forward-looking statements.
Other unknown or unpredictable factors also could affect our
forward-looking statements. Consequently, the Tiptree’s actual
performance could be materially different from the results described or
anticipated by its forward-looking statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Except as required by the federal securities
laws, we undertake no obligation to update any forward-looking
statements.
For more information on Care Investment Trust LLC, please visit www.careinvestmenttrust.com
For more information on Royal Senior Care Management, please visit www.royalseniorcare.com
Copyright Business Wire 2015