campus repositioning financed by non-recourse, non-rated bonds underwritten by smis at fixed rates from 5.30% – 6.375% for 10 – 30 years

At the end of October 2004, Sims closed a $62.09 million non-recourse financing for Overlook Communities, Inc. (the “Overlook”). The Overlook will be a new lifecare retirement community consisting of 219 independent living units, 205 apartments and 14 cottages.

The Overlook is a subsidiary of the Masonic Home, Inc., d/b/a Masonic Health System of Massachusetts (“MHS”) and will be located on approximately 20 acres in Charlton, Massachusetts. The Masonic organization was founded over 100 years ago, and through its affiliates, provides skilled nursing, residential care and home health services.

MHS is repositioning its campus in three phases. The repositioning of the existing campus in Charlton was initiated in 2002 with the financing by Sims of the replacement of the existing nursing facility. The new skilled nursing building was completed in December 2003 and is a state of the art facility that has improved operating efficiencies and expanded service capabilities. The renovation of the residential care facility is underway and will be completed by December 31, 2004. The repositioning of the campus will be realized with the completion of The Overlook, transforming the campus into a full-service continuing care retirement community.

MHS provided pre-development capital for The Overlook, and will make available a $2.5 million line of credit fund to support operations for a limited period, but is not an obligor on the bonds.

The financing includes a $37.0 million construction loan obtained by Sims and is expected to be repaid from approximately 85% of the initial entrance fee proceeds. The $10.0 million of non-rated adjustable rate bonds carry an initial rate of 5.00% through the first reset date of January 1, 2010. The $15.09 million of non-rated, fixed rate bonds carry yields from 5.30% to 6.375% with maturities ranging from 10 to 30 years.