TORONTO, June 19, 2013 /CNW/ - HealthLease Properties Real Estate
Investment Trust (HLP.UN) ("HealthLease" or "the REIT") has agreed to
acquire a newly-built, fully leased 100-unit seniors housing and care
facility from Mainstreet Property Group, LLC ("Mainstreet"), the asset
and property manager for the REIT. The facility is leased on a
triple-net basis to Life Care Services ("LCS"), a leading US provider
of seniors housing and care with retirement communities serving over
28,000 residents in 29 states.
The facility, Wellbrooke of Westfield, is located in Hamilton County,
Indiana, one of the fastest-growing counties in the United States. This
Next GenerationTM facility is a hallmark of Mainstreet's market-leading approach to
health care property design and development. Next GenerationTM designs offer hotel-like properties that transform seniors housing and
care into a hospitality experience by incorporating concierge-based
services to specifically cater to the evolving demands of the growing
senior population. Of the 100 units at Westfield, 70 are licensed to
provide skilled nursing, rehabilitation and therapy services, while the
other 30 provide assisted living.
"We are very pleased to add this brand-new, high-quality property to the
HealthLease portfolio," stated Zeke Turner, Chairman and CEO of the
REIT. "This Class A+ property in a fast growing market is anticipated
to be immediately accretive to the REIT. As well, by partnering on
another facility with LCS, we continue to increase our diversity among
leading seniors housing care operators."
Wellbrooke will be acquired under the REIT's pre-existing development
agreement with Mainstreet that provides the REIT with a right to
acquire any seniors housing and care properties developed by
Mainstreet. Subject to the approval of the TSX and the satisfaction of
other customary closing conditions, HealthLease will acquire the
property for its appraised value of $17,860,000, in a combination of
assumed debt and exchangeable REIT units. The exchangeable units
represent one-hundred percent of Mainstreet's net proceeds from the
sale with no additional cash consideration being paid to Mainstreet.
HealthLease will also acquire certain cash assets for their net present
value of $2,470,000.
"This acquisition demonstrates that our agreement with Mainstreet is a
cost-effective and efficient way to continually add high-quality
properties to our portfolio, without dragging earnings, and to further
strengthen our balance sheet," added Adlai Chester, CFO of HealthLease.
"As well, Mainstreet accepting units in the REIT for one-hundred
percent of the net proceeds shows its commitment to the REIT and
management's alignment with unitholders."
Wellbrooke of Westfield is the fourth property developed by Mainstreet
for the REIT. In February 2013, Mainstreet announced the completion of
three development properties - two in Indiana and one in Illinois -
which were sold to the REIT in its initial public offering. Mainstreet
has a deep pipeline of development opportunities, including seven
properties currently under development that will be offered to the REIT
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a
premier 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. The
long-term leases are structured with 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.
This news release contains forward-looking statements which reflect the
REIT's current expectations regarding future events, including, without
limitation, that the REIT will acquire Wellbrooke of Westfield and that
the acquisition will be immediately accretive to the REIT. The
forward-looking statements involve risks and uncertainties, including
that the acquisition of the Wellbrooke of Westfield will not be
completed, the acquisition will not be accretive, and those set forth
in the REIT's Annual Information Form 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