Five Star Quality Care, Inc. (FVE: Quote) said Thursday that effective December 31, it has transferred the operations of two rehabilitation hospitals to entities affiliated with Reliant Hospital Partners, LLC Richardson, Texas.
The two hospitals are New England Rehabilitation Hospital located in Woburn, MA and Braintree Rehabilitation Hospital located in Braintree, MA, plus several leased in-patient and out-patient locations in eastern Massachusetts which are affiliated with these hospitals. The hospitals were formerly leased by Five Star Quality Care from Senior Housing Properties Trust (SNH: Quote).
Senior Housing Properties sold the hospitals' real estate assets to HSRE-TST III, LLC, a joint venture comprised of affiliates of The Sanders Trust, LLC of Birmingham, AL and Harrison Street Real Estate Capital, LLC of Chicago, IL
With the hospitals' sale and operations transfers complete, Five Star Quality Care expects to realize cash proceeds of about $8.0 million from the retention of its working capital investment in those hospitals. Five Star Quality Care will be relieved of rent obligations totaling about $11.5 million per year, including rents to Senior Housing Properties Trust and rents to third parties.
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by RTT Staff Writer
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