Boston-based Steward Health Care System is offering to sell 11 medical office buildings on the campuses of its Massachusetts hospitals, clarifying that the hospital system is "not a real estate company," according to a Steward spokesperson cited in a Boston Globe report.
For-profit Steward plans to sell the buildings, lease the real estate back and use the funds for hospital operations. Steward would then sign long-term contracts to rent the office space. The buildings have been described by Steward as having a "vacancy rate of 0 percent," according to the report.
The sales are expected to return tens of millions in cash, according to the report.
Steward spokesperson Chris Murphy said in the report that proceeds from the sales will not be redirected to Cerberus Management, the private equity firm that owns Steward. He said the money will instead be put back into the hospitals.
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For-profit Steward plans to sell the buildings, lease the real estate back and use the funds for hospital operations. Steward would then sign long-term contracts to rent the office space. The buildings have been described by Steward as having a "vacancy rate of 0 percent," according to the report.
The sales are expected to return tens of millions in cash, according to the report.
Steward spokesperson Chris Murphy said in the report that proceeds from the sales will not be redirected to Cerberus Management, the private equity firm that owns Steward. He said the money will instead be put back into the hospitals.
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