SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 16, 1994
HEALTH EQUITY PROPERTIES INCORPORATED
(Exact Name of registrant as specified in its charter)
North Carolina
(State or other jurisdiction of incorporation)
33-34225
(Commission File Number)
56-1591771
(IRS Employer Identification Number)
915 West fourth Street, Winston-Salem, North Carolina 27101
(Address of principal executive offices)
Registrant's telephone number, including area code: 910 723-7580
Item 5. Other events
On March 16, 1994 the Registrant sold the Lakeland Manor Nursing
Center located in Chicago, Illinois, to an affiliate of the
lessee, Alden Management Services, Inc. in the normal course of
business. Alden Management Services, Inc. is wholly owned by
Floyd A. Schlossberg, who serves as a director of the Registrant.
In addition, rental income received from Alden for 1993, 1992 and
1991 accounted for 24.2%, 24.5%, and 25.9%, respectively, of the
Registrant's total rental income. Rental income received from
the sold facility for 1993, 1992 and 1991 represented 6.5%, 6.9%
and 6.9%, respectively of the Registrant's total rental income.
The purchase price of $10.1 million was received in cash. The
purchase price was determined based on the most recent appraisal
of the facility. Expenses of the sale were approximately
$320,644, providing the Registrant with net proceeds of
$9,779,356. The Registrant utilized $3,063,028 for the repayment
of a loan bearing interest at an annual rate of 11.25%, which
loan was secured by multiple properties of the Company, including
the sold facility. In addition, the Company used $1.5 million of
the proceeds to prepay $1.5 million of another loan bearing
interest at an annual rate of 12.0%. The balance of the proceeds
will be used for general corporate purchases, including debt or
equity investments in real estate.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereto duly authorized.
HEALTH EQUITY PROPERTIES INCORPORATED
By: Susan L. Christiansen
Vice President and General Counsel
Date: April 12, 1994
