Rising India, Inc. Announces SNH Sells 2 Hospitals for $90 Million, Refocuses
on Senior Living
TUSTIN, CA -- (Marketwired) -- 09/26/13 -- Rising India, Inc. (OTC
Pink: RSII) announces SNH sells 2 hospitals for $90 million,
refocusing on Senior Living.
Senior Housing Properties Trust announced Friday that it has entered
into an agreement to sell two rehabilitation hospitals to a joint
venture for $90 million.
The two hospitals to be sold are the 198-bed New England
Rehabilitation Hospital located in Woburn, Massachusetts, and 166-bed
Braintree Rehabilitation Hospital in Braintree, Mass.
Currently leased to Five Star Quality Care, Inc., the two hospitals
will be sold to the joint venture comprised of affiliates of The
Sanders Trust, LLC of Birmingham, Alabama, and Harrison Street Real
Estate Capital, LLC of Chicago.
In connection with the transactions, FVE has agreed to terminate its
lease of the hospitals and transfer operating rights and obligations
to entities affiliated with Reliant Hospital Partners, LLC, a private
company located in Richardson, Texas, that will operate the hospitals
once the sale is completed.
FVE believes that the combination of capital investment required to
comply with recent federal and state hospital regulation, along with
future Medicare rate limitation pressures, mean that economies of
scale are essential to produce financially successful hospital
operations, according to the company's President and CEO Bruce
"After carefully considering these factors, Five Star determined to
focus its future operations on expanding its private pay senior
living business and to transfer these hospitals' operations to
Reliant," Mackey said. "The exit from these hospital operations
increases Five Star to focus on its core business of operating
private pay senior living communities."
When the hospitals' sale and operations transfer are completed, FVE
expects to realize cash proceeds of between $6.5 million and $7.5
million by retaining its working capital investment in these
hospitals, according to a company release.
Upon completion of the sale, SNH currently expects to realize a gain
of over $30 million.
For more than a decade, SNH has been focused on reducing its exposure
to government funded programs like Medicare and Medicaid, according
to David Hegarty, president and COO of SNH.
"Upon completion of the sale of these hospitals, this plan to reduce
SNH's exposure to possible future reductions in government funded
Medicare and Medicaid programs will be nearly complete," he said.
SNH also believes that it can offset its rent reduction by
reinvesting the sale proceeds into additional healthcare-related real
The sale of these hospitals is not subject to any financing
conditions, however, the transition is subject to various health
regulatory approvals and other closing conditions.
Both SNH and FVE expect the sale may be completed by mid-year 2014.
Jefferies & Company, Inc., acted as a financial advisor in connection
with the sale.
For more information, please visit www.risingindiainc.com
About Rising India, Inc.
Rising India, Inc., ("RSII"), is a holding
Corporation that develops independent living, assisted living and
memory center communities. Rising India's management are specialists
in acquiring raw land and having it entitled for the appropriate use
and then build the proposed project.
Forward-Looking Statement Any statements made in this press release
which are not historical facts contain certain forward-looking
statements; as such term is defined in the Private Security
Litigation Reform Act of 1995, concerning potential developments
affecting the business, prospects, financial condition and other
aspects of the company to which this release pertains. The actual
results of the specific items described in this release, and the
company's operations generally, may differ materially from what is
projected in such forward-looking statements. Although such
statements are based upon the best judgments of management of the
company as of the date of this release, significant deviations in
magnitude, timing and other factors may result from business risks
and uncertainties including, without limitation, the company's
dependence on third parties, general market and economic conditions,
technical factors, the availability of outside capital, receipt of
revenues and other factors, many of which are beyond the control of
the company. The company disclaims any obligation to update
information contained in any forward-looking statement. This press
release shall not be deemed a general solicitation.
Rising India, Inc.
Press spacebar to pause and continue. Press esc to stop.