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HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES OPTION TO PURCHASE NINE NURSING HOMES

 NEWTON, Mass., April 21 /PRNewswire/ -- Health and Rehabilitation Properties Trust (NYSE: HRP) today announced that it has entered an agreement granting it an option to purchase nine nursing homes for approximately $19 million from subsidiaries of SAFECO Corporation (NASDAQ: SAFC).
 The nine nursing homes, containing 1,247 beds, are located in seven different states: two in Ohio, two in Washington, and one each in Wisconsin, Missouri, Oregon, Iowa and California. Each nursing home is currently leased to an operating company unaffiliated with either HRP or SAFECO. Two are leased to Beverly Enterprises, Inc. (NYSE: BEV); two to Unicare Homes, Inc., a division of CROWNX, Inc. (TSE: CRNX); and the remaining five are leased to privately held companies. The leases all include various rent escalation provisions and renewal options; and a spokesman for HRP stated that the initial combined yield from minimum rents which HRP expects on its total investment will be between 11.75 percent and 12 percent per annum.
 David J. Hegarty, Treasurer of HRP stated that HRP believes that the transaction is the first time a health care REIT has acquired a group of portfolio investments from another financial institution, other than the RTC or another government agency.
 Last December HRP acquired 12 performing nursing home mortgage loans from the RTC in an approximately $18 million transaction and last week won a bid with the RTC on 25 performing nursing home mortgage loans in an approximately $72.5 million transaction. "We look forward to additional discussions with other major financial institutions interested in divesting health care real estate assets," Hegarty said.
 The proposed transaction is subject to various conditions, including regulatory approvals. The agreement requires a closing on or before Aug. 31, 1993, but a spokesman for HRP stated that it is expected to close before June 30.
 HRP is a real estate investment trust headquartered in Newton, Mass., which invests in health care related real estate. After the transaction announced today and the RTC transaction announced last Friday, HRP will have approximately $459 million invested in 95 health care facilities which are located in 24 states.
 SAFECO, a holding company based in Seattle, owns operating subsidiaries engaged in various segments of insurance and financial services. The SAFECO subsidiaries involved in the transaction announced today are SAFECARE Company, Inc. and SCIT, Inc., both also headquartered in Seattle.
 -0- 4/21/93
 /CONTACT: Joyce Silver of HRPT, 617-332-3990/
 (HRP)


CO: Health and Rehabilitation Properties Trust ST: Massachusetts, Washington IN: HEA SU: CON

TM-CH -- NE013 -- 8661 04/21/93 11:07 EDT
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Date:Apr 21, 1993
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