Kindred Healthcare, Louisville, Ky., said it has agreed to acquire the real estate related to 11 nursing centers that it currently leases from Health Care Property Investors, Long Beach, Calif., and will sell HCP three of its hospitals. The post-acute-care provider said it will pay HCP a one-time cash payment of about $35 million. Following the transaction -- still subject to closing conditions and the approval of Kindred's lenders -- Kindred intends to sell the nursing centers and expects to generate about $55 million to $65 million from the sale. The nursing centers contain 1,754 licensed beds and generated pretax losses of about $4 million for the year ended Dec. 31, 2005, and $2 million for the six months ended June 30, 2006, Kindred said in a news release. As part of this deal, Kindred will terminate its current annual rent of about $9.9 million on the nursing centers, add the hospitals to the master lease with a current annual rental rate of about $6.3 million, and extend the expiration date of the master lease until September 2016. At deadline, representatives from Kindred and Health Care Property Investors were not available for comment. -- by Jessica Zigmond
Kindred aims to lease hospitals, sell nursing centers
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