The REIT says the loan and the equity investment will be used byAmerican Retirement to refinance its outstanding debentures thatmature on Oct. 1, with the deal subject to certain conditions thatAmerican must meet. The loan and the equity investment are bothexpected to close on or before Sept. 30.

According to an announcement by the REIT, in return for itsequity investment it will gain a 9.8% ownership interest in certainsubsidiaries of American Retirement that own the real estateunderlying nine of American's retirement communities. American,based in Brentwood, Tenn. operates 65 senior living communities in14 states with a combined capacity of about 14,400 residents,providing independent living, assisted living, skilled nursing andAlzheimer's care. The nine facilities that Health Care PropertyInvestors is funding have an occupancy rate of approximately92%.

The American Retirement deal is the second major financialtransaction announced in a month by Health Care Property Investors,which in July announced $70 million of investments in new healthcare facilities that included nine nursing homes and one assistedliving facility in Indiana, Kentucky and Texas, a 92-unit assistedliving facility in Mission, Kan. The REIT's chairman and CEO,Kenneth B. Roath, said the recent acquisitions reflected thecompany's strategy of acquiring assets in what it considers keyhealth care-related facilities.

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