HRPT Properties agrees to sell 48 buildings for $565M

Office real estate investment trust HRPT Properties Trust said Tuesday that it agreed to sell 48 medical office, clinic and biotech laboratory buildings to Senior Housing Properties Trust for $565 million.

Senior Housing will pay about $554 million in cash at the closings and take on three mortgages on two properties that will total about $11 million, HRPT said.

HRPT expects the sales to close in phases during the next 12 months.

As of the end of 2007, HRPT's historical investment in the properties was about $397 million and the depreciated book carrying value of the properties was about $350 million. It expects to see capital gains of about $215 million from the sales.

HRPT said its aggregate capitalization rate for the sales is about 7.1 percent, based on $40 million per year in net operating income from the buildings.

HRPT plans to use sale proceeds to purchase properties and to pay down debt.

Senior Housing was formerly a subsidiary of HRPT that in 1999 was spun off to HRPT stockholders. At that time, the companies began an agreement prohibiting Senior Housing from buying medical office, clinic and biotech laboratory buildings. The agreement has been changed to allow Senior Housing, rather than HRPT, to make investments in such properties.

HRPT shares rose 6 cents to $7.09, while Senior Housing shares fell 65 cents to $23.40.