Tower Health secures $200M by selling 24 properties to Chicago firm

Alia Paavola –
Tuesday, July 28th, 2020
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Oak Street Real Estate Capital of Chicago bought 24 homes owned by Tower Health, including medical offices, outpatient centers, ambulatory surgical treatment centers and the Reading Rehabilitation Hospital..

Richard Wells, a representative for Tower Health, informed business Journal that the financial hit from the coronavirus pandemic sped up the requirement for the sales to enhance its balance sheet..

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The company then rented the residential or commercial properties back to the health system..

” The profits will support Tower Healths preparations for a possible revival of the coronavirus later this year, while likewise improving our total monetary position and ensuring our ability to satisfy Tower Healths objective and our service to the community,” Mr. Wells informed business Journal..

West Reading, Pa.-based Tower Health has raised about $200 million by offering residential or commercial properties, according to The Philadelphia Business Journal..

In mid-June, Tower Health said its expenditures increased to purchase individual protective equipment and its earnings dropped 40 percent due to the suspension of optional treatments, leading to a loss of $212 million.

No severe care hospitals were consisted of in the offer, according to the report.

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