TORONTO, June 20, 2012 /CNW/ - HealthLease Properties Real Estate Investment Trust (the "REIT") announced today that it has completed its initial public offering of
trust units, raising gross proceeds of $110 million. A total of
11,000,000 trust units were sold at a price of $10.00 per trust unit.
The REIT has granted to the underwriters of the Offering an option to
purchase up to an additional 1,100,000 trust units at a price of $10.00
per trust unit for a period of 30 days after closing of the Offering,
which, if exercised in full, will increase the total gross proceeds of
the Offering to approximately $121 million.
The Offering was underwritten by a syndicate of underwriters co-led by
Canaccord Genuity Corp. and National Bank Financial Inc. and including
BMO Nesbitt Burns Inc., CIBC World Markets Inc., Dundee Securities
Ltd., GMP Securities L.P. and Raymond James Ltd.
The trust units will commence trading today on the Toronto Stock
Exchange under the symbol "HLP.UN".
Mainstreet Property Group, LLC ("Mainstreet") will indirectly retain an approximate 17.9% (or an approximate 16.6%
interest in the REIT if the over-allotment option is exercised in full)
interest in the REIT (on a fully exchanged basis) through the ownership
of Class B limited partnership units of a subsidiary of the REIT, which
are economically equivalent to (subject to certain adjustments), and
exchangeable for, trust units of the REIT.
Zeke Turner, Chief Executive Officer of the REIT and Mainstreet,
commented that, "We are excited about the initial public offering of
HealthLease Properties REIT. We believe our portfolio is a fantastic
platform on which to further develop the potential of the REIT. It is
humbling to see the interest that investors have expressed in this
offering. We will work hard toward our goal of maximizing unitholder
The REIT initially intends to make monthly cash distributions of
$0.07083 per trust unit to holders of trust units. The first
distribution of the REIT will be for the period from closing to July
31, 2012 and will be paid on or about August 15, 2012, in the amount of
$0.09781 per trust. Declared distributions will be paid on or about the
15th day of each month to unitholders of record at the close of
business on the last business day of the immediately preceding month.
These securities have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States without registration or an
applicable exemption from the registration requirements of that Act.
This news release does not constitute an offer for sale of these
securities in the United States.
This press 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 final prospectus dated June 8, 2012 under
the section "Risk Factors", a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein.
The REIT disclaims any obligation to update these forward-looking
About HealthLease Properties Real Estate Investment Trust
The REIT has been formed to own, develop and acquire seniors housing and
care properties, which are leased to experienced operators. The REIT
will own the land and buildings and lease them to operators on a
long-term, triple-net lease basis. The operators provide and manage the
service offerings available at the facilities, deliver all care
services and maintain the buildings. On closing of the Offering and
completion of the transactions described in the REIT's final prospectus
dated June 8, 2012 (a copy of which can be obtained at www.sedar.com),
the REIT will directly or indirectly acquire a portfolio of nine
seniors housing and care properties owned by a wholly-owned affiliate
of Mainstreet Property Group, LLC and six seniors housing and care
properties owned by a subsidiary of Northern Property Real Estate
SOURCE HealthLease Properties Real Estate Investment Trust
For further information:
Paul Ezekiel Turner
Chief Executive Officer
HealthLease Properties Real Estate Investment Trust