Kuala Healthcare Announces Lease\Purchase Agreement For An Assisted Living Facility
ENGLEWOOD CLIFFS, N.J., March 3 /PRNewswire/ -- Kuala Healthcare, Inc. (Nasdaq: KUAL), today announced it has entered into a lease\purchase agreement for the development of an 80-unit assisted living facility in Midland Park, New Jersey. The facility, which is expected to begin construction with in the next six months, will be leased and operated by Kuala Healthcare, Inc. The initial terms of the lease agreement is for 20 years, with renewal options for an additional 80 years. In addition, the agreement contains an option to purchase the facility beginning in the fourth year of the lease term.
Jack Rosen, president and chief executive officer of Kuala Healthcare, Inc., stated, "We are extremely excited about the Midland Park agreement. This transaction is in line with the company's new strategic direction of increasing our presence in the assisted living industry. This facility, combined with our current facility in operation and those facilities under development, increases our presence in the New Jersey market significantly."
Mr. Rosen added, "We believe that the lease/purchase structure is ideally suited to enable us to maximize our existing capital resources. We will continue to explore other opportunities to acquire or lease suitable facilities to add to our network in the coming months." |
