TORONTO AND HOUSTON, TX, Dec. 22 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced the successful syndication of its newly formed operating partnership MicroSurgery Institute of Houston ("MSI") with an initial seven physician partners. Northstar will participate in the MSI partnership by leasing the surgery center assets and staff of The Palladium for Surgery - Houston, Ltd. partnership ("Palladium") to MSI for an ownership interest of 25%. This joint venture is intended to have a contractual one year life during which time management will evaluate Palladium's longer term options. Northstar will manage MSI for its standard 5.5% of center collections. Management is continuing to identify additional physician partners to participate in the MSI partnership.
Additionally, upon the completion of a fair market value assessment of the Palladium partnership by a third party valuation firm, Northstar intends on acquiring the partnership interests from several of its limited partners, including the 18% interest of the Company's founder and Chief Executive Officer, Dr. Donald Kramer.
MSI is in the process of obtaining a credit facility to provide working capital during the startup phase of the partnership.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centers in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company holds interests in two ambulatory surgery centers in Houston and manages a third surgery center in Dallas.
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