CARMEL, IN, July 2, 2013 /CNW/ - Mainstreet Property Group, LLC
("Mainstreet") announced today that, in connection with the acquisition
by HealthLease Properties Real Estate Investment Trust (the "REIT") of
a newly-built, fully-leased 100-unit seniors housing and care facility
from Mainstreet (the "Acquisition"), Mainstreet received, as
consideration, beneficial ownership of (a) an aggregate of 446,481
special voting units ("Special Voting Units") of the REIT, together
with (b) the corresponding 446,481 class B limited partnership units
("Class B Units") of a subsidiary limited partnership of the REIT,
which Class B Units are economically equivalent to and exchangeable for
REIT units on a one-for-one basis. The Class B Units issued to
Mainstreet in connection with the Acquisition represent a 2.1% interest
in the REIT (on a fully exchanged basis). Mainstreet remains the sole
owner of the Class B limited partnership units.
Following the Acquisition, Mainstreet has beneficial ownership over
2,846,481 Class B Units and 19,400 REIT units, representing in the
aggregate a 13.5% interest in the REIT (on a fully exchanged basis).
The consideration payable in connection with the Acquisition was
US$20,330,000, which was satisfied with a combination of assumed debt
and 446,481 Class B Units, which were issued based on a volume-weighted
average closing price of the REIT's units on the Toronto Stock Exchange
for the 20 trading-day period ending on June 28, 2013.
Mainstreet's interest in the REIT may be increased or decreased in the
future as considered appropriate in light of investment criteria,
market conditions and other factors and in accordance with the
provisions of applicable securities legislation and the terms of the
development agreement between the REIT and Mainstreet.
Further information (including a copy of the report to be filed with
Canadian securities regulators in connection with this transaction) can
be obtained by contacting Scott White:
Mainstreet Property Group, LLC
14390 Clay Terrace Blvd, Suite 205
Carmel, IN. 46032
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a
portfolio of seniors housing and care facilities located in the United
States and Canada. The facilities are leased to experienced tenant
operators who have significant operational experience in the U.S. and
Canada. 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 of properties meets
the needs 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.
About Mainstreet Property Group
Indiana-based Mainstreet Property Group, the largest skilled nursing
developer in the United States, is known for acquiring and developing
desirable, concierge-based health care properties with a hotel-like
atmosphere for a variety of short-term and long-term needs. The
company's innovative and industry-leading Next Generation™ design meets
the demands of the Baby Boomer, including communities with multiple
social destinations, restaurant-style dining, spacious private rooms
and baths, and therapy/wellness. Mainstreet was named to the Inc.
500/5000 list of fastest-growing companies in 2010, 2011, and 2012. For
additional information, visit www.mainstreetcap.net.
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 AIF dated March 6, 2013 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
SOURCE: HealthLease Properties Real Estate Investment Trust
For further information:
Executive Vice-President, Finance
HealthLease Properties REIT
(416) 815-0700 ext. 258