American Retirement Corporation Completes Sale/Leaseback Transaction.Business Editors American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ) today announced the completion of a sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. transaction with Nationwide Health Properties, Inc. (NHP NHP Non-Human Primate NHP Natural Health Product NHP Nevada Highway Patrol NHP National Historic Park NHP Nottingham Health Profile NHP National Health Plan NHP Nursing Home Placement NHP Nominal Horsepower NHP Not-Hot Plug (server) ) involving five of its senior living communities. The Company sold the five communities for $57 million and then contemporaneously leased the properties back from NHP for terms up to 12 years, with up to five renewal extensions available at the Company's option. The Company has either the right to repurchase or has a right of first offer with respect to certain of these communities. These communities included a 235-unit congregate care community in Denver, Colorado, a 186-unit continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement center in Chandler, Arizona, a 141-unit skilled nursing center in San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. and two free-standing assisted living communities in Tampa, Florida and Greenville, South Carolina
Greenville is a mid-sized city located in the upstate of South Carolina. It is the county seat of Greenville CountyGR6 . The aggregate gross proceeds for the transaction was $57 million and the Company used a portion of the proceeds to repay mortgage financing debt that was scheduled to mature during 2002 and to defray closing costs associated with the transaction. The remaining proceeds are available to fund the Company's general capital requirements. Additionally, NHP will make up to $4 million available to build an expansion at the Chandler community. About American Retirement Corporation American Retirement Corporation offers a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and Alzheimer's care. The Company currently operates 65 senior living communities in 14 states with an aggregate capacity for approximately 14,300 residents. The Company's strategy is to develop senior living networks in major metropolitan regions. These networks are comprised of large continuing care retirement communities and free-standing assisted living residences located in the same markets. About Nationwide Health Properties, Inc. Nationwide Health Properties, Inc. is a real estate investment trust that invests in senior housing and long-term care facilities. The Company and its joint venture have investments in 391 facilities in 38 states. For more information on NHP, visit the website at http://www.nhp-reit.com. |
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