Joint venture's basic goal: jump-start stalled projects by ProQuest

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                                                                      Joint venture’s basic goal:
                                                                      jump-start stalled projects
» Skilled Healthcare Group Inc.’s
earnings rose by 11% to more than $9
million, as revenues increased to approxi-
mately $190 million. “We continue to face
a challenging economic environment and                                By Liza Berger                                                                                              continuing to enter the indus-
an era of reimbursement uncertainty,”                                 A joint venture has been                                                                                    try, but “because the financ-
said Boyd Hendrickson, chairman and                                   formed to capitalize on senior                                                                              ing situation is so challenging,
CEO of the company. Profits for the first                             living development and con-                                                                                 those groups are finding they




                                                                                                                                             Photo: Formation Development Group
six months expanded to $19 million.                                   struction projects that have                                                                                can’t get into the business,”
Revenues climbed to nearly $383 million.                              been stalled as a result of the                                                                             Maberry said.
The company recently restated its financial                           economic downturn.                                                                                             The parent companies of
statements for the three years ended Dec.                                Formation Shelbourne Part-                                                                               the joint venture will provide
31, 2008, and each of the quarters from                               ners is an outgrowth of private                                                                             equity and financing for For-
Jan. 1, 2007, through March 31, 2009.                                 equity groups Alpharetta, GA-                                                                               mation Shelbourne Partners.
                                                                      based Formation Capital LLC          Mark Maberry is executive VP of                                        Formation was one of two
» Five Star Quality Care Inc.’s                                       and Shelbourne Healthcare            Formation Development Group.                                           companies that acquired the
profits more than doubled in the second                               Development Group of Rad-                                                                                   nursing home chain Genesis
quarter of 2009 as revenues rose by 10%                               nor, PA, and their develop-          living giant Sunrise Senior Liv-                                       HealthCare Corp. in 2007.
to nearly $300 million. Net income from                               ment subsidiaries.                   ing Inc., have been sidelined,                                            T he ne w ve nt u re w i l l
continuing operations included several                                   It aims to take over projects     said Mark Maberry, co-founder                                          develop its own projects and
items that, in aggregate, resulted in a posi-                         that have foundered as a result      and executive vice president                                           offer consulting and fee devel-
tive impact of $6.5 million.                                          of the recession. It also wants to   of Formation Development                                               opment services to investors,
                                                                      take advantage of the increased      Group, the development com-                                            lenders, operators and devel-
» Ventas Inc. earned nearly $90 million                               availability and attractive pric-    pany of Formation Capital.                                             opers. It will perform market
in the second quarter of 2009. That repre-                            ing of site locations. Its target       “They went from develop-                                            research and lend expertise in
sents a 26% increase from the same quar-                              settings are freestanding assist-    ing a few dozen a year to not                                          various development areas.
ter last year. The real estate investment                             ed living and Alzheimer’s care       developing any more at all,”                                              Maberry noted that despite
trust, which is the landlord of Kindred                               communities.                         he said. “There are others that                                        the recession, the fundamen-
Healthcare Inc., reported a 60% rise in                                  There ar
								
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