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HEALTH EQUITY ANNOUNCES COMMITMENT TO MAKE $8 MILLION IN MORTGAGE LOANS

 WINSTON-SALEM, N.C., Nov. 11 /PRNewswire/ -- Health Equity Properties (NYSE: EQP) announced today its commitment to make $8 million in first and second mortgage loans to CCI Acquisition Corporation for the acquisition of five nursing homes in Pennsylvania. CCI Acquisition Corporation is an affiliate of Complete Care, Inc., one of the company's lessees. The $5 million first mortgage loan bears interest at 12 percent per year, with additional interest based on increases in revenues, and is self-amortizing over a 20 year term. The company, as lender, may call for full payment on the 5th, 10th and 15th anniversaries of the loan. The first mortgage loan will not exceed 65 percent of the appraised value of the nursing home collateral and provides for yield maintenance and debt service coverage of at least 140 percent. The company also has a right of first refusal on the nursing home collateral.
 The $3 million second mortgage loan will be fully amortized over eight years at an initial interest rate of 15 percent, with call rights on the 5th anniversary. It is secured by the same collateral as the first mortgage loan, as well as a first priority lien on the borrower's receivables and the personal guarantees of the borrower's shareholders.
 It is anticipated that both loans will close during the first quarter of 1994.
 Health Equity Properties also stated that the recent Indiana Supreme Court decision upholding the state's Medicaid System should have no material impact on the company's revenues from its Indiana nursing homes, as revenue growth in those homes in recent years is primarily attributed to Medicare, rather than Medicaid, reimbursements. Thus, growth in additional rent from those homes is expected to continue. The Indiana Health Care Association has not yet determined whether to appeal to the U.S. Supreme Court as well as whether to continue proceedings in Federal Court.
 Based in Winston-Salem, N.C., Health Equity Properties is a real estate investment trust which owns 77 nursing homes in 7 states. The company is managed by a nine member board of directors, five of whom are independent from the company.
 -0- 11/11/93
 /CONTACT: William G. Benton or Jody Ragan of Health Equity Properties, 919-723-7580/
 (EQP)


CO: Health Equity Properties; CCI Acquisition Corporation;
 Complete Care, Inc. ST: North Carolina, Pennsylvania IN: HEA SU:


MM -- CH006 -- 3190 11/11/93 11:34 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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