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HEALTH EQUITY PROPERTIES ANNOUNCES CHANGE IN LESSEE FOR THREE INDIANA PROPERTIES, PURCHASE OF A FLORIDA FACILITY AND THE RE-FINANCING OF TWO NORTH CAROLINA FACILITIES

 WINSTON-SALEM, N.C., July 7 /PRNewswire/ -- Health Equity Properties (NYSE: EQP) announced today that effective July 1, 1993 Res-Care, Inc. became the lessee of three facilities located in Indiana which were previously leased to Beverly Enterprises. The new rent is the anticipated amount that would have been paid by Beverly for 1993, which includes additional rent. The rent will increase annually by six percent.
 Health Equity Properties also announced the acquisition of a 106 bed assisted living facility in Melbourne, Fla., for a purchase price of $4,775,000. Simultaneously with the purchase, Health Equity Properties entered into a lease of the facility with Liberty Assisted Living Centers Limited Partnership, an affiliate of Liberty Healthcare Services Limited Partnership, which leases four other properties owned by the company. The lease provides an initial return on the company's equity investment of approximately 14.6 percent. The lease has an initial term of 10 years with two 5-year renewals and provides for base rent with annual additional rent based on increases in revenue.
 As a result of the transactions noted above, and the acquisition of the Kansas facility in 1992, the percentage of base rent revenues received from any one operator changed as follows: Beverly from 40 percent to 36 percent; Alden from 26 percent to 25 percent; Res-Care from 10 percent to 13 percent; Liberty from 10 percent to 12 percent; with the remaining 14 percent attributable to all other lessees.
 The company now owns 77 long-term healthcare facilities in seven states.
 The company also announced completion of 8.75 percent HUD refinancing on two of its North Carolina facilities. A portion of the proceeds from the refinancing will be used to renovate the properties, which are leased to Southeastern Personal Care Centers. The balance of approximately $3 million will be used to pay down other debt of the company with an average debt service constant of approximately 15 percent.
 Based in Winston-Salem, N.C., Health Equity Properties is an equity real estate investment trust which owns long-term health care facilities. The company is managed by a nine member board of directors, five of whom are independent from the company.
 -0- 7/7/93
 /CONTACT: William G. Benton or Jody Ragan of Health Equity Properties, 919-723-7580/
 (EQP)


CO: Health Equity Properties ST: North Carolina IN: HEA SU: TNM

MM -- CH002 -- 8966 07/07/93 09:32 EDT
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Publication:PR Newswire
Date:Jul 7, 1993
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