Pramerica Real Estate Investors, Sunrise Agree to Develop Senior Living Communities in the U.K.

Pramerica Real Estate Investors today announced that it has formed a joint venture with Sunrise Senior Living, Inc. (NYSE: SRZ), to develop senior living properties in the United Kingdom. Pramerica is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU), which is based in the United States. Pramerica, acting on behalf of investors, including those in its PRECO III fund, and Sunrise expect to develop 18 new assisted living properties in residential locations throughout the UK over the next four years. Under the agreement, Sunrise will manage the properties. The joint venture has the capacity to invest up to £500 million, through investments of up to £100 million, with the balance funded by loans provided by third-party lenders. Under terms of the agreement, Pramerica will own 80 percent of the venture, with Sunrise owning the remaining 20 percent. Additional terms of the agreement were not disclosed. The venture is the second for the two partners, following an initial foray into the UK market together in 2002, which then further expanded in 2004. "Following the success of our initial venture, we’re excited to bring more investors into the European senior living market,” said Jonathan Short, managing director and head of Pramerica’s European merchant banking team. "We believe that bringing capital to team up with an established brand like Sunrise in Europe will create value for investors in both companies, as well as serve this rapidly growing segment of the population.” By mid-2006, the percentage of U.K. citizens over age 65 totaled 16 percent, with those aged 85 and over totaling 2 percent, according to the U.K.’s Office of National Statistics. The number of people aged 85 and over grew by 60,000 in the year to 2006 to reach a record 1.2 million and is projected by the Statistics office to grow by 20 percent in five years and by 35 percent over 10 years. This large increase reflects improving survival and the post World War One baby boomers now reaching this age group, according to the Statistics office. ”We are pleased with the success of our first 12 projects in the U.K. The acceptance of our innovative, high-end, resident-centered model by our residents and their families is very encouraging and we are clearly filling a gap in the market,” said Thomas Newell, president of Sunrise. "We see tremendous potential for growth in the U.K. and other European markets and believe Pramerica is an excellent partner for the next phase of this growth." About Sunrise Senior Living Sunrise Senior Living, a McLean, Va.-based company, employs more than 40,000 people. As of September 30, 2006, Sunrise operated 436 communities in the United States, Canada, Germany and the United Kingdom, with a combined capacity for more than 50,000 residents. Sunrise also had 46 communities under construction in these countries with a combined capacity for more than 6,000 additional residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing, rehabilitative and hospice care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise, please visit http://www.sunriseseniorliving.com. About Pramerica Real Estate Investors Pramerica Real Estate Investors’ specialized operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia, and Latin America. The company's fund management operations, located in Parsippany, N.J.; Atlanta, Ga.; Munich, London, Mexico City and Singapore, are supported by a network of local offices throughout the world. As of September 30, 2006, Pramerica Real Estate Investors managed USD 32.9 billion of gross assets (USD 23.7 billion net) on behalf of more than 300 clients and is ranked among the largest real estate investment managers. For more information, visit www.pramericarei.com. About Pramerica Financial Pramerica Financial is a tradename used by Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately USD 586 billion of assets under management as of September 30, 2006, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential Financial is focused on helping individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential Financial's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services. For more information, please visit www.prudential.com. Prudential Financial is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.