HEALTH AND REHABILITATION PROPERTIES TRUST AGREES TO ACQUIRE MORTGAGE LOAN PORTFOLIO FOR $18,750,670 FROM RESOLUTION TRUST CORP.
HEALTH AND REHABILITATION PROPERTIES TRUST AGREES TO ACQUIRE MORTGAGE LOAN PORTFOLIO FOR $18,750,670 FROM RESOLUTION TRUST CORP. NEWTON, Mass., Sept. 24 /PRNewswire/ -- Health and Rehabilitation Properties Trust (NYSE: HRP) today announced that it was selected by the Resolution Trust Corporation as the winning bidder on a portfolio of performing nursing home mortgage loans. The portfolio consists of loans with total balances outstanding of approximately $22 million. The loans are secured by 12 nursing homes in Texas, Louisiana and Ohio. The homes have a total of 1,257 beds and based on the winning bid of $18,750,670, the average loan balance per bed is $14,900. The nursing homes are owned by 11 different mortgagors and the most recent aggregate appraised values for the homes was $24,800,000. The largest single investment is a mortgage for approximately $4 million due from Beverly Enterprises, Inc. (NYSE: BEV). The bid amount was calculated to yield the company in excess of a 15 percent return. The effect on the company's cash flow will be positive, but the exact amount will be known after the company determines whether any reserves should be established. The mortgage loans mature at various dates between 1993 and 1999. The closing is subject to further due diligence and document negotiation, but is expected to close in approximately 60 days. Upon announcing this transaction, Mark J. Finkelstein, president and CEO of HRP, stated: "We are very pleased to have won this bid. The nursing homes securing these mortgage loans have very good cash flow coverage of their debt service. This investment allows HRP to invest money at above market returns with below average risk considering the loan value per bed amounts." This transaction further diversifies HRP's real estate portfolio. Upon conclusion of this transaction, HRP will have invested approximately $383 million in 63 health care facilities located in 18 states. -0- 9/24/92 /CONTACT: Mark J. Finkelstein, president, or David J. Hegarty, treasurer, 617-332-3990, both of HRP/ (HRP) CO: Health and Rehabilitation Properties Trust ST: Massachusetts IN: HEA SU: CON
TM -- NE002 -- 2949 09/24/92 09:14 EDT
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|Date:||Sep 24, 1992|
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