HealthSouth Corp., Birmingham, Ala., said it has signed an agreement to sell its corporate headquarters for at least $60 million. Proceeds from the sale will be used to pay a portion of the companys long-term debt. The sale is expected to be completed by the end of July. The sale property includes a 200,000-square-foot headquarters building on 85 acres and an adjacent parcel of 19 acres that was the site of HealthSouths erstwhile digital hospital, which is only partially built. The buyer is an investment fund sponsored by a real estate developer, Trammell Crow Co., which is an independently operated subsidiary of developer CB Richard Ellis, Los Angeles.
The move is the latest in a series of transactions that are reducing the companys debt load and focusing the company on inpatient rehabilitation services. In March, HealthSouth agreed to sell its surgery division for $920 million in cash to private-equity firm Texas Pacific Group, which has joint headquarters in Fort Worth and San Francisco. HealthSouth also would receive a small equity stake in the independent division, valued at $25 million to $30 million.
Last month, the company completed the sale of its outpatient rehabilitation division for $245 million to privately held Select Medical Group, Mechanicsburg, Pa. In April, the company agreed to sell its diagnostic division to the Gores Group, a private-equity firm, for $47.5 million; the deal is expected to close no later than the third quarter of this year. HealthSouth operates 93 inpatient rehabilitation hospitals and 10 long-term acute-care hospitals. -- by Vince Galloro