Medical office building operator MedCap Properties, which is partly owned by HCA, was sold to a joint venture of GE Commercial Finance and Health Care Property Investors (HCPI) in a deal valued at more than half a billion dollars. The venture, HCP Medical Office Portfolio, acquired 100 medical office buildings from MedCap, Nashville, for $460 million. Most of the properties are adjacent to HCA hospitals. HCPI, a public company based in Newport Beach, Calif., has a one-third stake and will earn acquisition and management fees as well as additional fees if investment goals are achieved. HCPI also will acquire five buildings under construction with an expected cost of $67 million. The buildings will be transferred to the joint venture upon completion. In a separate deal, an additional eight buildings, worth $49 million, will be owned by a joint venture of HCPI and senior MedCap management. MedCap President and CEO Charles Elcan will manage HCPI's medical office portfolio. HCA sold 116 buildings on its hospital campuses to MedCap in 2000 for $250 million and retained a 48% stake in the company, according to its 2002 annual report. -- by Mary Chris Jaklevic
HCA-backed medical office company sold
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