AdCare Transfers Operations Of One Georgia Facility; Extends Closing Date For Sale Of Nine Arkansas Properties
ATLANTA–AdCare Health Systems, Inc., a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare, today announced that the company has transferred the operations of its Savannah Beach facility located in Georgia from New Beginnings Care, LLC to an affiliate of Peach Health Group LLC.
"Our portfolio of properties is further enhanced with the transfer of operations of one facility to Peach Health Group," commented Bill McBride, AdCare's Chairman and Chief Executive Officer. "The ongoing process of improving the financial, clinical and operational performance of our portfolio continues as we strive to improve our returns on investments and increase cash flow. We are pleased to have partnered with Peach Health Group, a highly-regarded operator, to increase the value of this property and elevate the standard of care that is delivered. We are also working closely with Peach Health on recertification plans for our Jeffersonville and Oceanside properties."
Proposed Sale of Nine Arkansas Properties
The company also announced that it amended its Purchase Agreement with affiliates of Skyline Healthcare, LLC to extend the date by which the sale of the company's nine Arkansas properties must close from August 1, 2016 to August 31, 2016. In connection with the extension: (i) the affiliates of Skyline Healthcare also acknowledged their release or waiver of all conditions to the completion of the sale; and (ii) the master lease under which the company leases the nine Arkansas properties to the affiliates of Skyline Healthcare was amended to eliminate the company's indemnity obligations thereunder.
The master lease commenced on April 1, 2016. In connection with the master lease, Skyline Healthcare entered into an option agreement to purchase the nine properties at a purchase price of $55.0 million. On May 1, 2016, an affiliate of Skyline Healthcare delivered notice of its intent to exercise the option to purchase the properties, and a definitive agreement for the purchase was subsequently executed. The purchase price to be paid includes $52.0 million in cash at closing with the balance of the purchase price to be evidenced by a promissory note. There is no assurance that the sale of the nine Arkansas properties will be completed on the terms described in this press release or at all.