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HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES AGREEMENT TO ACQUIRE AND LEASE SEVEN HEALTHCARE FACILITIES FOR $16.75 MILLION

HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES AGREEMENT TO

ACQUIRE AND LEASE SEVEN HEALTHCARE FACILITIES FOR $16.75 MILLION
 NEWTON, Mass., April 20 /PRNewswire/ -- Health and Rehabilitation Properties Trust (NYSE: HRP) today announced it has entered into an agreement to acquire seven healthcare facilities for $16.75 million from Samaritan Senior Services, Inc. and its affiliates and lease these facilities to a subsidiary of GranCare, Inc. (NASDAQ: GRNC).
 The seven facilities include five nursing homes and two retirement living apartment complexes. The facilities are LaSalette Rehabilitation and Convalescent Hospital (122 beds located in Stockton, Calif.), Village Green Nursing Home (127 beds located in Phoenix, Ariz), SunQuest Village of Yuma (65 beds supervisory care apartment complex located in Yuma, Ariz.), LaMesa Care Center (128 beds located in Yuma, Ariz), Huron Nursing Home (163 beds located in Huron, S.D.), SunQuest Village of Huron (59-unit retirement living apartment complex located in Huron, S.D.), and Mom and Dad's Health Care Center (159 beds located in Sioux Falls, S.D.).
 The health care facilities are being acquired from Samaritan Senior Services, Inc. and its affiliates. Samaritan Senior Services, Inc. is a subsidiary of the Samaritan Foundation, a major not-for- profit provider of health care services headquartered in Phoenix, Ariz. The facilities will be leased by HRP simultaneously with their acquisition to a 100 percent owned subsidiary of GranCare Inc. HRP currently leases 18 nursing homes and has provided financing for two nursing homes operated by GranCare, Inc.
 The seven facilities to be acquired are the same facilities HRP announced last year that it intended to acquire from Samaritan Senior Services. At the conclusion of HRP's purchase, these facilities will now be leased to GranCare, an existing publicly owned corporation which is totally unrelated to Samaritan Senior Services.
 The lease will be for an initial period of 15 years with renewal options totaling an additional 20 years. Minimum rent in the first year will be approximately $1.95 million. In addition, rent will be supplemented quarterly based upon gross revenue increases at the leased facilities.
 The closing of this transaction is subject to, and may be delayed by, various health regulatory approvals which are customary in transactions of this kind. HRP anticipates the closing will occur on or about June 30, 1992.
 Upon announcing this transaction, Mark J. Finkelstein, president and CEO of HRP, stated:
 "We are very pleased with this transaction for a number of reasons. First, this transaction provides continued diversity of our investment portfolio in terms of operator, facility type and geographical location. We have experience with the GranCare management team and believe them to be experienced and well respected in the long-term health care arena. Second, we view these facilities as having good potential for revenue growth. We had previously announced that we would finance these facilities for another lessee, but that transaction was subsequently terminated. We continue to believe these facilities are choice facilities and will continue to prosper. Third, this transaction should add approximately 3 cents per share of cash flow available for distribution per year."
 Health and Rehabilitation Properties Trust is a real estate investment trust which invests in health care related real estate. Upon conclusion of this transaction, HRP will have invested approximately $333 million in 48 health care facilities located in 18 states.
 -0- 4/20/92
 /CONTACT: Mark J. Finkelstein, president and CEO, or David J. Hegarty, treasurer, of HRPT, 617-332-3990/
 (HRP GRNC) CO: Health and Rehabilitation Properties Trust; GranCare, Inc. ST: Massachusetts IN: HEA SU: TNM


TM -- NE010 -- 0076 04/20/92 12:51 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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