CHICAGO & STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 1, 2003--
New Joint Venture Formed by GE Commercial Finance and Health Care Property Investors, Inc.
HCP Medical Office Portfolio has entered into a definitive agreement to acquire 100 medical office buildings from MedCap Properties, LLC. The transaction will close on October 2, 2003. The 5.5 million square feet of medical office buildings in the portfolio are located predominantly on the campuses of HCA Inc. (NYSE: HCA) affiliate hospitals throughout the country. HCA is a leading operator of hospital facilities in the United States.
HCP Medical Office Portfolio is a joint venture formed in June 2003 by GE Commercial Finance and Health Care Property Investors, Inc. (NYSE: HCP) to acquire medical office buildings nationwide. The partners in this joint venture have extensive medical office and real estate experience and are proactively targeting additional portfolio acquisitions throughout the United States.
"We created HCP Medical Office Portfolio in response to hospitals and health care systems' need to redeploy capital from non-core assets toward their mission of providing quality healthcare," noted Rick Wolfert, President and CEO of GE Healthcare Financial Services, a unit of GE Commercial Finance. "This strategic acquisition will be the first transaction for the $600 million joint venture and signifies GE Commercial Finance's commitment to rapidly expanding our healthcare real estate presence."
"Health Care Property Investors' strong management team, deal-making expertise and excellent industry relationships enabled us to hit the ground running," concluded Michael Pralle, President and CEO of GE Real Estate, a unit of GE Commercial Finance.
Jay Flaherty, CEO of Health Care Property Investors, said, "The joint venture won this acquisition because of its deep health care experience and its ability to structure, commit and fund a complicated 100-asset transaction in under 60 days."
Simultaneously, Health Care Property Investors will acquire 13 additional medical office buildings from MedCap. This acquisition will include stabilized and development properties. The HCP Medical Office joint venture will acquire five of these development properties upon completion in 2004 from Health Care Property Investors.
GE Commercial Finance, with approximately $200 billion in assets, offers businesses of all sizes an array of financial services and products. It is a part of GE, a diversified services, technology and manufacturing company with operations worldwide. GE Real Estate (www.gerealestate.com) is one of the world's leading resources for commercial real estate capital. GE Healthcare Financial Services (www.GEHealthcare.com) offers a full range of financing capabilities from equipment leasing and real estate financing to working capital lending and vendor programs.
Health Care Property Investors, Inc. (NYSE:HCP) is a self-administered equity real estate investment trust (REIT) that invests directly or through joint ventures in health care facilities. The Company's investment portfolio, as of June 30, 2003, consisted of 448 facilities in 44 states. The Company's investments include 31 hospitals, 175 long-term care facilities, 126 retirement and assisted living facilities, 85 medical office buildings and 31 other healthcare facilities. The Company commenced operations in 1985 and is headquartered in Newport Beach, CA. For more information on Health Care Property Investors, Inc., visit the Company's Web site at www.hcpi.com.
HCA (NYSE: HCA) is the hospital owner/operator contiguous to the on-campus facilities. HCA is the nation's leading provider of healthcare services with 190 hospitals and 82 surgery centers in 23 states, UK, and Switzerland. www.HCAhealthcare.com.
Statements in this news release that are not historical may contain forward-looking statements subject to risks and uncertainties, such as competition for the acquisition of medical office buildings, the ability to acquire, sell or lease medical office buildings and the timing of acquisitions, sales and leasings, and changes in economic conditions, including changes in interest rates and the availability and cost of capital, which affect opportunities for profitable acquisitions.
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CONTACT:
GE
Deia Lofendo, 312-441-6169
OR
Health Care Property Investors
James G. Reynolds, 949-221-0600/888-604-1990
OR
(General and Investor Information)
Victoria Baker, 703-796-1798
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340