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Sun Healthcare Sets Date for Real Estate Spinoff

Sun Healthcare Group Inc., an Irvine nursing home operator, said Friday it’s set a date for the spinoff of its real estate into a new investment company.

On Nov. 15, current Sun stockholders are set to receive one share of Sabra Health Care REIT Inc. for every three shares of Sun stock they own as of Friday.

The split is creating Sabra and an operating company, which will retain the Sun Healthcare name.

Regular trading of Sabra and the new Sun are set to begin Nov. 16. Before that, Sun said that the companies’ stocks would be traded on an initial basis starting Monday.

Sabra will own 86 healthcare buildings that are leased to Sun.

The healthcare real estate investment company’s initial market value is projected at $350 million to $400 million.

Sun officials have said they sought the split to generate money for shareholders that hasn’t been reflected in Sun’s market value, which stands at about $590 million.

Analysts have said that Sabra would appeal to investors seeking smaller healthcare real estate investment trusts.

Sabra will be run by Richard Matros, who is chief executive of the current Sun. William Mathies, currently president of Sun’s SunBridge Healthcare Corp. subsidiary, will become chief executive of the operating company.

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