Sunrise REIT acquires three U.S. assisted living communities

    TORONTO, April 3, 2007 /CNW/ - Sunrise Senior Living Real Estate
Investment Trust (the "REIT") (TSX:SZR.UN) announced today that it has
acquired an 80% controlling interest in three recently constructed assisted
living communities located in Utah, Arizona and California for total
consideration of $55.3 million (US$47.8 million).

    The three communities feature the following numbers of suites and

    Location                       Suites                         Capacity
    --------                       ------                         --------
    Sandy, UT                   79 suites                     95 residents
    Scottsdale, AZ              79 suites                     95 residents
    Rocklin, CA                 64 suites                     78 residents
                               ----------                    -------------
                               222 suites                    268 residents

    All of the communities were developed by and acquired from Sunrise Senior
Living, Inc. ("Sunrise") (NYSE:  SRZ). Sunrise owns the remaining 20% ownership
interest and will manage the communities pursuant to long-term management
    These three communities have been acquired pursuant to the Sunrise REIT's
"loan-to-own" program. The 80% interests were acquired pursuant to existing
fixed price acquisition agreements providing the REIT with the right to
acquire the interests upon the issuance of a Certificate of Occupancy.
Concurrent with the acquisition, Sunrise repaid $16.4 million
(US$14.2 million) in mezzanine loans incurred to finance the development of
the communities. Proceeds received from the loan repayment, together with cash
drawn on Sunrise REIT's operating line, were used to fund the $18.4 million
(US$15.9 million) cash portion of the acquisition, the balance of the total
consideration will be funded through the assumption of third party
construction loans.
    "Once stabilized, these communities are expected to generate an unlevered
yield in excess of 9.4%, making them accretive investments", noted Douglas J.
MacLatchy, President and CEO of the REIT.

    About Sunrise REIT (TSX:SZR.UN)

    Sunrise REIT was formed to indirectly acquire, own and invest in
income-producing senior living communities in major metropolitan markets and
their surrounding suburban areas in Canada and the United States. Sunrise REIT
owns 74 senior living communities, 11 in Canada and 63 in the United States.
All of Sunrise REIT's senior living communities are managed by Sunrise Senior
Living, Inc. one of the largest providers of senior living services in North
America. Sunrise REIT also directly acquires interests in newly developed
senior living communities through development and financing arrangements with
Sunrise Senior Living, Inc.

    Forward-Looking Statements

    Certain statements contained in this news release may include
forward-looking information with respect to Sunrise REIT's operations and
future financial results. Such statements are based on current expectations,
are subject to a number of uncertainties and risks, and actual results may
differ materially from those contained in such statements. These uncertainties
and risks include, but are not limited to, availability of resources,
competitive pressures, changes in market activity and regulatory requirements.
Further information can be found in disclosure documents filed by Sunrise REIT
with regulatory authorities, available at

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