KAREA Completes KKR-backed Sentio Healthcare Acquisition for $825M

9/24/17

Kayne Anderson Real Estate Advisors, the real estate private equity arm of Kayne Anderson Capital Advisors, L.P., KKR , Sentio Healthcare Properties, Inc. and Sentio Investments, LLC announced that KAREA has successfully completed its acquisition of SHP. Effective August 31, 2017, KAREA owns and operates the SHP portfolio of 33 properties including senior housing communities and medical office buildings in 16 states across the U.S.

“This transaction brings 33 high quality assets to our senior housing and medical office portfolios. We are excited for the opportunity to create additional value through property renovations, facility expansions and other operational enhancements,” said David Selznick, Chief Investment Officer of KAREA. “We believe the addition of SHP’s best-in-class assets further solidifies KAREA’s position as an industry leader in the healthcare real estate space and that this transaction positions us to continue to generate strong returns for our investors.”

“It has always been and will continue to be our priority to provide the highest quality service to our residents and partners. This has resulted in very attractive investment results for the SHP shareholders, which we expect to continue to deliver for future investors with Sentio Investments,” said John Mark Ramsey, CEO of the REIT and Managing Member of Sentio Investments. “We are confident that KAREA will continue to provide industry leading service and care in the communities.”

“Thanks to the impressive work of John Mark and the care provided by his team, Sentio Investments has delivered outsized shareholder returns and tripled in size over the past four years,” said Billy Butcher, Member of KKR. “We are confident that Kayne Anderson will continue to operate these assets successfully and bring exceptional care to the portfolio’s residents and tenants.” KKR’s investment in Sentio Healthcare Properties was led through its Real Estate Partners Americas Fund.

As previously announced, under the terms of the agreement between KAREA and SHP, KAREA acquired all outstanding shares of Sentio in an all-cash transaction based on an estimated total asset value of $825 million. Sentio stockholders received $14.65 per share in cash and one contingent value right for each share of common stock of Sentio held. The contingent value right represents a proportionate interest in up to an additional $8.76 million, which could be released at the end of three years, subject to reduction as a result of certain indemnification rights of KAREA under the merger agreement. Should the maximum amount of funds in the escrow be released to the stockholders, the result would be up to an additional $0.29 per share in cash.

About Sentio Healthcare Properties, Inc.

Sentio Healthcare Properties, Inc. was a public, non-listed, real estate investment trust, which invested exclusively in healthcare-related real estate, and delivered strong and reliable returns to investors. The Company featured a diversified portfolio of senior housing and medical properties throughout the United States. The Company’s portfolio offered diversity in many areas including asset type, geographic location, operators and payor mix. The REIT was led by a team of healthcare real estate industry veterans at Sentio Investments, LLC, the REIT’s advisor, with the core industry objective of tailoring a capital structure that complemented the operating platform of developers and owner/operators, recognizing that each is unique in its approach and service to the healthcare industry.

About Sentio Investments, LLC

Sentio Investments, LLC focuses on impact investments exclusively in healthcare real estate, with an emphasis on private pay senior housing, medical offices, and post-acute properties. Sentio Investments, based in Orlando, Florida, provides investors with turn-key solutions for deploying capital into the healthcare real estate sector through an integrated approach to deal origination, asset management, accounting, and investor relations. The boutique firm, led by industry veterans, has over $5 billion dollars in experience acquiring and developing healthcare real estate across the country over the past 14 years.

About Kayne Anderson Real Estate Advisors

Kayne Anderson Real Estate Advisors (KAREA) is a leading real estate private equity investor in off-campus student housing, senior housing and medical office buildings. KAREA has raised dedicated real estate private equity funds totaling approximately $5 billion in commitments. KAREA is part of Kayne Anderson Capital Advisors, L.P., a $26 billion alternative investment management firm (AUM as of 3/31/17) with more than 30 years of successful experience in the energy, infrastructure, growth capital, real estate, middle market credit and distressed municipal sectors.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic partners, hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside its partners’ capital and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

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