TORONTO, Oct. 10, 2014 /CNW/ - HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) ("HealthLease" or the "REIT") announced today that in connection with the previously-announced proposed plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta) involving, among others, the REIT and Health Care REIT, Inc. and certain of its subsidiaries (collectively, the "Purchaser"), it has received notice from the Purchaser that the REIT will not be required to cause its subsidiary, HealthLease Canada Properties Inc. ("HealthLease Canada"), to engage in a transaction whereby HealthLease Canada would have disposed of all of the shares in the capital of HealthLease U.S., Inc. to a newly formed subsidiary of HealthLease Canada (the "Pre-Effective Date Transaction").
Because the Pre-Effective Date Transaction will not be implemented, the transactions to occur pursuant to the Arrangement will not include the payment of the HealthLease Canada Dividend (as defined in the REIT's management information circular dated September 22, 2014 (the "Circular")) by HealthLease Canada to the REIT. In reviewing the summary of the principal Canadian federal income tax considerations set out in the Circular, unitholders of the REIT are accordingly advised that the net income of the REIT arising as a result of the Arrangement will not include any amount in respect of the HealthLease Canada Dividend (which amount previously had been anticipated to be approximately $0.95 per unit of the REIT, as set forth in the Circular). Unitholders are urged to review the Circular (including the summary of "Material Canadian Federal Income Tax Considerations" set forth therein) and consult their own tax advisors to determine the particular tax effects to them of the Arrangement.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns 52 seniors housing and health care facilities - 13 in two Canadian provinces and 39 in eight U.S. states, for a total of 5,224 beds. The REIT has entered into a contract to acquire one additional property and such acquisition is expected to close in 2014. 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.
About Health Care REIT, Inc.
HCN (NYSE:HCN), an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. The company also provides an extensive array of property management and development services. As of June 30, 2014, the company's broadly diversified portfolio consisted of 1,224 properties in 46 states, the United Kingdom, and Canada.
SOURCE: HealthLease Properties Real Estate Investment Trust