HealthLease Properties REIT Announces Completion of Acquisition of Senior Care Facility in High River Alberta
CARMEL, Indiana, July 21, 2014 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") announced today that it has successfully completed the previously announced acquisition of a senior care facility in High River, Alberta from Continuum Healthcare Holdings, Ltd. ("Continuum").
Sunrise Village High River is a newly-built facility with 176 units that provides both assisted living and independent living services. The facility is leased to Continuum on a ten-year triple-net lease term with two five-year renewal options. The facility is licensed by Alberta Health Services.
"We are very pleased to add Sunrise Village High River to our portfolio," said Zeke Turner, Chairman and CEO of the REIT. "It is built to the same high standards as our Mainstreet-developed properties and is designed to provide the best care for its residents."
Sunrise High River was acquired for $34.3 million with an implied cap rate of 7.3 percent. It is one of two developments by Continuum located in Alberta that received mezzanine financing of $5.3 million from the REIT in July 2013 (of which $5.2 million has been repaid). The second property, Sunrise Village Encore located in Encore, Alberta, consists of 107 units and is expected to be complete by September 2014.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns one of the youngest and highest quality portfolios of seniors housing and care facilities with 52 properties - 13 in two Canadian provinces and 39 in eight U.S. states - for a total of 5,224 beds. The facilities are leased to experienced tenant operators who have significant operational experience. The leases are structured as long-term and triple-net: features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio meets the growing demands of modern seniors by emphasizing features such as hotel-like design, private rooms and baths and hospitality-inspired amenities. For more information, visit www.hlpreit.com.
This news release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties, including those set forth in the REIT's Annual Information Form dated March 11, 2014 under the section "Risk Factors," a copy of which can be obtained at www.sedar.com. In addition, the securities to be acquired by the REIT in the fund will be relatively illiquid and the REIT's acquisition will represent a minority interest and, as such, the REIT will have no control over the Fund. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.
The securities of Mainstreet Development Fund II, L.P., have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States or Canada without registration or the filing of a prospectus or an applicable exemption from the registration or prospectus requirements of the Act or applicable Canadian securities laws. This news release does not constitute an offer for sale of these securities in the United States of America or Canada.
SOURCE HealthLease Properties Real Estate Investment TrustFor further information:
Chief Financial Officer
HealthLease Properties REIT
(416) 815-0700 ext. 258