Senior Living Investment Brokerage was engaged by SunLink Health Systems in its divestment of a skilled nursing facility in Houston, Mississippi. Built in 1969, the facility, Trace Extended Care & Rehab, features 66 beds in 50 units. SunLink sold this facility and related real estate to redeploy capital and focus on its core business. The buyer was a Mississippi-based group looking to add to its existing presence in the state. According to SunLink, the facility was sold for approximately $7.1 million, or $107,600 per bed.
SunLink noted that the sale is intended to further its strategy of positioning itself for a larger transaction, which might include a merger or consolidation with a compatible third party, while also seeking to improve its existing operations and considering the disposition of non-performing assets. SunLink is seeking to identify a strategic transaction which it believes would offer its shareholders a reasonable opportunity for future appreciation in the value of their shares at what the Board and management believe is an acceptable level of risk.
SunLink also noted that the net proceeds of approximately $6.5 million will be retained for working capital and general corporate purposes. SunLink expects to recognize a pre-tax gain on the sale of approximately $5.7 million in its fourth fiscal quarter ending June 30, 2024.
Dan Geraghty and Brad Clousing handled the transaction, which saw eight offers from both national and regional buyers.
