CommonWealth REIT has announced that it entered into an agreement to sell 27 medical office properties to Senior Housing Properties Trust for $470 million according to Senior Housing News. The sale, expected to be completed between now and June 30, 2011, covers properties that include approximately 2.8 million square feet of space and are located in 12 states. According to CommonWealth, it expects to realize net capital gains of approximately $174 million; the historical cost of the properties being sold is approximately $378 million and its current net book value of these properties is approximately $296 million.
The portfolio currently shows an average occupancy of roughly 95% with the majority leased to medical service providers and other tenants in medical related businesses. Senior Housing Properties Trust was formerly a 100% owned subsidiary of CommonWealth until it was spun out in 1999. As a results of agreements, Senior Housing Properties has rights of first refusal on the properties being sold. Both entities are managed by by Reit Management & Research LLC.
For more news and information visit Blumberg Capital Partners.
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