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Sierra Sells Some Real Estate Holdings

California

January 03, 2001|From Bloomberg News

Sierra Health Services Inc., a managed health-care company, said Tuesday it sold most of its Las Vegas real estate properties to the investment unit of Los Angeles-based CB Richard Ellis Services Inc. for $115 million.

Sierra entered into a long-term lease with CB Richard Ellis Corporate Partners last week, spokesman Peter O'Neill said.

The company's operations won't change, he said. Sierra said it will initially receive $61.7 million, of which $50 million will be used as payment on its line of credit.

The sale includes 500,000 square feet of office space and medical clinic facilities. Most of the office space is located at the company's Las Vegas headquarters and the clinics are located throughout the metropolitan area.

Sierra's subsidiaries serve 1.3 million people through health maintenance organizations, point of service and preferred provider plans and a contract with the U.S. Department of Defense, O'Neill said.

On the New York Stock Exchange, shares of Sierra rose 44 cents, or 12%, to close at $4.24 and CB Richard Ellis fell 6 cents to close at $14.56.

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