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HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES A MORTGAGE INVESTMENT OF
$29 MILLION; RELOCATION OF OFFICES TO NEWTON, MASS. PR Newswire January 29, 1990, Monday

1 of 1 DOCUMENT
PUB: PR Newswire
January 29, 1990, Monday

HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES A
MORTGAGE INVESTMENT OF $29 MILLION; RELOCATION OF OFFICES
TO NEWTON, MASS.
LENGTH: 719 words
DATELINE: NEWTON, Mass., Jan. 29
NEWTON, Mass., Jan. 29 /PRN/ -- Health and Rehabilitation
Properties Trust (NYSE: HRP) today announced that it has made a
mortgage investment of $29 million to Continuing Health Care Corp. II
("Continuing Health II"). Continuing Health II is the result of
a merger of four presently existing separate corporations, each of
which is affiliated with New MediCo Associates, Inc. of Boston, Mass.
The New MediCo group of companies is one of the largest privately
owned operators of health rehabilitation and skilled nursing facilities
in the United States and had annual revenues last year of approximately
$350 million.
This $29 million mortgage investment will be combined with existing
mortgage investments by HRP totaling $27 million in two of the four
corporations being combined to form Continuing Health II. The existing
investment of $27 million and the new investment of $29 million are
being combined to create one new mortgage loan of $56 million. The new
loan will be due Jan. 31, 2005. The base interest on the loan will be
13 percent per annum for the first five years; and on the fifth and 10th
anniversary dates, interest will be reset at the higher of (i) 13
percent or (ii) the five year Treasury Note Rate plus 4 percent per
annum. In addition, Additional Interest will be payable to HRP
equal to 3 percent of the increase in net patient revenues over Base
Years' net patient revenues at the mortgaged facilities. Four million
dollars of the mortgage investment was not presently funded but may
be drawn within 36 months for capital improvements.
The primary collateral for this loan will be first mortgage
liens on the following health rehabilitation facilities:
-- New MediCo Rehabilitation Center of Florida, an 85-bed
rehabilitation facility including 24 buildings, containing
approximately 97,088 square feet of interior space, located on
approximately 872.4 acres in Wauchula, Fla.;
-- New MediCo Rehabilitation Center of Texas, a 64-bed
rehabilitation facility including 22 buildings, containing
approximately 108,229 square feet of interior space, located on
approximately 432 acres in Lindale, Texas;
-- New MediCo Rehabilitation and Nursing Center at Slidell,
an 118-bed rehabilitation and skilled nursing facility including
one building, containing approximately 49,545 square feet of
interior space, located on approximately 6.32 acres in Slidell,

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HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES A MORTGAGE INVESTMENT OF
$29 MILLION; RELOCATION OF OFFICES TO NEWTON, MASS. PR Newswire January 29, 1990, Monday
La.; and
-- New MediCo Rehabilitation and Skilled Nursing Center at
Meadowlands, a 120-bed rehabilitation and skilled nursing facility
including two buildings, containing approximately 41,891 square
feet of interior space located on approximately seven acres in
North Strabane, Pa.
The total mortgage investment equals approximately 75 percent
of the facilities' appraised value. In addition, Continuing Health II
will post a security deposit with HRP equal to approximately one year's
base interest, which security deposit may be reduced when Continuing
Health II achieves certain financial objectives.
In announcing this financing, Mark J. Finkelstein, president
and CEO of HRP, issued the following statement:
"New MediCo is one of the leading rehabilitation health care
companies in the United States. I am delighted that HRP was
able to structure a transaction which expands HRP's participation
in their nationwide growth. The four facilities which we have
financed in Florida, Texas, Louisiana and Pennsylvania are
fast becoming major rehabilitation care providers in their
respective markets."
Simultaneously with the announcement of this investment, HRP
announced that it had relocated its headquarter operations from
Cambridge, Mass., to 400 Centre Street, Newton, Mass., effective Monday,
Jan. 29, 1990.
HRP was orgainized in December 1986 to invest in health care
related real estate. Since inception, HRP has increased its portfolio
of health care real estate investments from approximately $63 million
to over $225 million (including the investments announced today).
CONTACT -- Mark J. Finkelstein, president, 203-342-3824; or
David J. Hegarty, treasurer, 617-332-3990, both of HRPT
LANGUAGE: ENGLISH
DISTRIBUTION: TO BUSINESS DESK
Copyright 1990 PR Newswire Association, Inc.