/NOT FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 14, 2012 /CNW/ - HealthLease Properties Real Estate Investment Trust (the "REIT") announced today that it has filed, and obtained a receipt for, a
final prospectus for its initial public offering of 11,000,000 trust
units (the "Offering") with the securities commissions of all provinces and territories in
Canada. The trust units will be issued at a price of $10.00 per unit.
Gross proceeds of the Offering are expected to be $110 million. 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
and, if exercised in full, will increase the total gross proceeds of
the Offering to $121 million.
The Offering is being 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 Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the trust units under the
symbol "HLP.UN", subject to fulfilling all of the requirements of the
The Offering is expected to close on June 20, 2012. On closing of the
Offering, it is expected that Mainstreet Property Group, LLC ("Mainstreet") will indirectly hold a 17.9% 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, and exchangeable for, trust units of the REIT.
On closing of the Offering, the REIT will use the net proceeds of the
Offering to directly and indirectly acquire a portfolio of nine seniors
housing and care properties owned by a wholly owned affiliate of
Mainstreet (including three pre-leased development properties, which
are currently under development and are expected to be completed within
12 months following closing of the Offering) and six seniors housing
and care properties owned by a subsidiary of Northern Property Real
Estate Investment Trust, to repay debt in respect of certain of the
acquired properties and for working capital purposes.
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
$0.0978 per trust unit assuming closing occurs on June 20, 2012.
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. Copies of the final
prospectus will be available on SEDAR at www.sedar.com.
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 of America.
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. Actual
results could differ materially from those projected herein. The REIT
disclaims any obligation to update these forward-looking statements.
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, the
REIT will directly or indirectly acquire a portfolio of 12 seniors
housing and care properties located in the state of Indiana and the
provinces of British Columbia and Alberta and three pre-leased
development properties located in the states of Indiana and Illinois.
SOURCE HealthLease Properties Real Estate Investment Trust
For further information:
Paul Ezekiel Turner
Chief Executive Officer
HealthLease Properties Real Estate Investment Trust