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Genesis HealthCare Takes 11 Maine Assets

NEWTOWN SQUARE, PA-Genesis will operate all of Portland, ME-based Sandy River's nursing facilities under a 25-year lease agreement that includes an option to buy.

By Marita Thomas | Updated on January 08, 2007

NEWTOWN SQUARE, PA-Genesis HealthCare Corp., has signed a lease and purchase option agreement for all 11 of Portland, ME-based Sandy River Health System’s skilled nursing and residential care facilities. Under the 25-year lease-agreement portion of the commitment, Genesis will pay an estimated $5 million per year and operate the facilities, all of which are in Maine.

In addition, Genesis has paid approximately $15 million for the facilities’ tangible operating assets along with a $53-million, fixed-price option to buy the properties, which is exercisable in 2026. A Genesis spokeswoman tells GlobeSt.com, “We’re buying the right to operate the facilities for 25 years and purchase them toward the end of that period. Some of the younger, individual owners of residential care units in the facilities didn’t want to sell, because of the tax consequences,” she explains.

The facilities have an aggregate of 748 skilled nursing and 220 residential care beds, which cover orthopedic and stroke rehabilitation, brain injury services, Alzheimer and dementia care and post-hospital care in addition to assisted living. The properties are: Harbor Hill in Belfast, Windward Gardens in Camden, Sedgewood Commons in Falmouth, Sandy River Center in Farmington, River Ridge in Kennebunk, Marshwood Center in Lewiston, Orono Commons in Orono, Pine Point in Scarborough, Cedar Ridge in Skowhegan, Oak Grove in Waterville and Springbook in Westbrook.

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