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GREENERY REHABILITATION GROUP ANNOUNCES ACQUISITION OF EIGHT REHABILITATION AND SKILLED NURSING FACILITIES

 GREENERY REHABILITATION GROUP ANNOUNCES ACQUISITION OF EIGHT
 REHABILITATION AND SKILLED NURSING FACILITIES
 NEWTON, Mass., May 12 /PRNewswire/ -- Greenery Rehabilitation Group, Inc. (NYSE: GRG) today announced that it has entered into agreements to lease eight rehabilitation and skilled nursing facilities. The facilities contain 1,183 licensed beds and are located in five states: Michigan -- 1 facility with 182 beds; Pennsylvania -- 1 facility with 120 beds; Louisiana -- 1 facility with 122 beds; Connecticut -- two facilities with 375 beds; and Massachusetts -- 3 facilities with 388 beds. This expansion will bring GRGs bed complement to a total of 2,959 licensed beds.
 The eight facility operations being acquired provide rehabilitation, sub-acute and skilled nursing health care programs similar to the 13 facilities currently operated by GRG. A Greenery spokesperson stated that, based upon audited financial statements for the year ended Dec. 31, 1991, these eight facilities had patient revenues of approximately $86 million, and had net operating income (before rent, depreciation, home office management charges and taxes) of almost $26 million/year, or twice the proposed initial annual rent of $13 million.
 All eight facilities will be leased from Health and Rehabilitation Properties Trust (NYSE: HRP). These facilities are presenttension options totalling an additional 30 years.
 Pro forma financial statements showing the possible impact of this acquisition upon GRGs financial performance are not available. Greenery Group is now studying current operating requirements and are in the process of estimating likely required needs in Greenery's home office charges which may result.
 George Ferencik, president and chief operating officer of GRG, made the following statement when announcing this acquisition:
 "Although Greenery's core East Coast facilities continue to run fully occupied, Greenery has experienced some difficulty in start-up operations at acquired facilities, especially in the Western parts of the country. I want to emphasize that the facilities being acquired today are not start-ups, they are existing operations, with a full complement of patients and staff, and most of these operations are in states where Greenery presently operates and already enjoys a strong reputation in the medical communities. We think these leasehold acquisitions represent a unique opportunity to materially expand our company with a relatively modest capital investment. We expect these operations to be profitable from the day Greenery assumes control."
 Ferencik pointed out that final consummation of this transaction is subject to various government approvals which are customary in the health care industry. Ferencik stated that Greenery will assume management responsibilities for these eight facilities pending final government regulatory approvals.
 Greenery Rehabilitation Group, Inc. is headquartered in Newton, Mass. GRG operates skilled nursing facilities which specialize in rehabilitation and sub-acute health care services.
 -0- 5/12/92
 /CONTACT: Gerard M. Martin, chairman, or George M. Ferencik, president, 617-244-4744, of Greenery/
 (GRG HRP) CO: Greenery Rehabilitation Group, Inc.; HRPT ST: Massachusetts IN: HEA SU: TNM


DH -- NE002 -- 8923 05/12/92 08:04 EDT
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Publication:PR Newswire
Date:May 12, 1992
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