Health and Retirement Properties Trust said its planned investment of $45 million in 14 nursing homes in England will be delayed.
In a press release, HRPT President David J. Hegarty said he considers the original commitment terminated.
Under the January 1995 agreement, the nursing homes were to be leased to Specialty Care PLC, a privately held United Kingdom-based company in which Integrated Health Services held a 20% stake, according to HRPT. Owings Mills, Md.-based IHS was to guarantee Specialty Care's lease obligations, HRPT said.
"Since that time, IHS has changed its ownership interest in Specialty Care and Specialty Care has itself completed a capital restructuring," said Newton, Mass.-based HRPT. Specialty is "either unable or unwilling to conclude a transaction on the terms of the original commitment," it said.
Hegarty said HRPT remains interested in making an investment with Specialty Care and U.K.-based healthcare facilities but said management and board members of the real estate investment trust are unwilling to take inordinate investment risk.
The REIT also announced its purchase of a Burlington Township, N.J., nursing home for $13 million. The nursing home was simultaneously leased to the Multicare Cos., a publicly traded operator of nursing homes based in Hackensack, N.J.