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Senior Housing Properties Trust (NYSE: SNH ) will soon be two properties lighter if a new divestment goes as planned. The specialty REIT announced that it has reached agreement to sell a pair of its hospitals in Massachusetts to a duo of property investors, The Sanders Trust and Harrison Street Real Estate Capital. The price is $90 million, and the firm expects to book a gain of more than $30 million on the deal.
The two facilities, New England Rehabilitation Hospital, and Braintree Rehabilitation Hospital, together have 364 licensed beds. Senior Housing acquired both in 2002, and is currently leasing them to Five Star Quality Care.
The company has been trying for years to limit its exposure to government-funded programs, a key reason for the sale of the Massachusetts properties. In the press release announcing the deal, the company quoted its COO David Hegarty as saying that, "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."
The transaction is subject to approval from the relevant regulatory bodies. Senior Housing expects it to close in mid-2014.