NASHVILLE, Tenn., June 15, 2017 /PRNewswire/ -- MedEquities Realty Trust, Inc. (NYSE: MRT) announced it has executed a definitive agreement to acquire the real property comprising Woodlake at Tolland Nursing & Rehabilitation Center, a skilled nursing facility, from a wholly owned subsidiary of Prospect Medical Holdings, Inc. for an aggregate cash purchase price of $10 million. The Company will lease this facility to Prospect ECHN Eldercare Services, Inc. pursuant to a 12-year triple-net lease at an initial lease rate of 9.0% with annual escalators. Prospect Medical Holdings and Prospect ECHN will also provide a guaranty for the lease. The transaction is expected to close within 60 days, subject to closing conditions and Connecticut regulatory approval.
Woodlake at Tolland is a three-story, free-standing skilled nursing facility located in Tolland, Connecticut approximately 20 miles northeast of Hartford. The facility contains approximately 65,000 square feet and is licensed for 130 beds.
Based in Los Angeles, Prospect Medical Holdings owns 20 acute-care and behavioral hospitals, physician networks and integrated healthcare facilities in Southern California, Connecticut, New Jersey, Pennsylvania, Rhode Island and South Central Texas with approximately 3,790 licensed beds and a network of specialty and primary clinics. In addition to Woodlake at Tolland, Prospect ECHN owns three hospitals in Connecticut and a network of outpatient service centers and providers and specialists.
John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted "Prospect has successfully grown with their coordinated regional care approach to create leading market positions in the communities they serve. The ability for us to enter into a Certificate of Need state through the acquisition of a high-quality asset with a proven operator as well as the potential to expand our working relationship with Prospect in the future made this a very compelling investment opportunity."
About MedEquities Realty Trust
MedEquities Realty Trust (NYSE: MRT) is a self-managed and self-administered real estate investment trust that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company's management team has extensive industry experience in acquiring, owning, developing, financing, operating, leasing and monetizing many types of healthcare properties and portfolios. MedEquities' strategy is to become an integral capital partner with high-quality and growth-oriented facility-based providers of healthcare services on a nationwide basis, primarily through net-leased real estate investment. For more information, please visit www.medequities.com.
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements provide our current expectations or forecasts of future events and are not statements of historical fact. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "will" and variations of these words and other similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and/or could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Forward-looking statements involve inherent uncertainty and may ultimately prove to be incorrect or false. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, see the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (the "SEC") on February 27, 2017, and other documents filed by the Company with the SEC. You are cautioned to not place undue reliance on forward-looking statements. Except as otherwise may be required by law, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or actual operating results.
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SOURCE MedEquities Realty Trust, Inc.