BOCA RATON AND ORLANDO, FLA. — Kayne Anderson Real Estate Advisors (KAREA) has entered into a definitive merger agreement under which affiliates of KAREA will acquire Sentio Healthcare Properties Inc. KAREA will acquire all of the outstanding shares of Sentio in an all-cash transaction valued at $825 million.
Sentio is a public, non-listed real estate investment trust (REIT), externally advised by Sentio Investments. The firm’s portfolio includes 34 seniors housing communities and medical office buildings located in 16 states across the United States. The Orlando-based company is financially backed by KKR (NYSE: KKR), a global private equity firm based in New York City. The merger would end KKR’s partnership with Sentio.
Sentio’s board of directors has unanimously approved the merger, which is expected to close in the third quarter of this year. KAREA plans to increase the value of the Sentio portfolio through property renovations, facility expansions and other operational enhancements.
KAREA is part of Kayne Anderson Capital Advisors LP, a $26 billion, Los Angeles-based alternative investment management firm with more than 30 years of experience in the energy, infrastructure, growth capital, real estate, middle market credit and distressed municipal sectors. KAREA, which operates out of Boca Raton, focuses on four asset classes: multifamily, student housing, seniors housing and medical office.
Citigroup Global Markets Inc. and HFF acted as financial advisors to KAREA, Hogan Lovells US LLP acted as its corporate legal advisor and Greenberg Traurig, LLP acted as real estate legal advisor.
Robert A. Stanger & Co. Inc. and UBS Investment Bank acted as financial advisors to Sentio, and Latham & Watkins LLP, Foley & Lardner LLP and DLA Piper acted as its legal advisors. Simpson Thacher & Bartlett LLP acted as legal advisor to KKR.
— John Nelson