CARMEL, IN, March 17, 2014 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") acquired two newly-built, triple-net leased, 100-unit seniors housing and care facilities from Mainstreet Property Group, LLC ("Mainstreet"). The facilities are leased on a triple-net basis to Trilogy Health Systems ("Trilogy"), a leading US provider of seniors housing and care.
The two facilities, Clearvista Lake Campus located in Castleton, Indiana and Arlington Place Health Campus, located in Indianapolis, Indiana are the most recent Next Generation® Medical Resorts developed by Mainstreet. Each facility has 100 short-stay rehabilitation suites. These facilities carry on Mainstreet's vision to transform seniors housing and care into a hospitality experience by incorporating hotel-like amenities and concierge-based services.
"As we continue to build off of the momentum of 2013, we are pleased to announce two more additions to our growing portfolio of high-quality, Next Generation® facilities," stated Zeke Turner, Chairman and CEO of the REIT. "Because our exclusive partnership with Mainstreet Property Group, we expect to continue to grow and add high-quality properties throughout 2014."
Castleton and Arlington were acquired under the REIT's pre-existing development agreement with Mainstreet, which provides the REIT with a right to acquire any seniors housing and care properties developed by Mainstreet. HealthLease acquired the properties for an aggregate purchase price of US$37,425,000.
Mainstreet has informed the REIT that it has a deep pipeline of development opportunities, including eight properties currently under development that will be offered to the REIT upon completion in 2014 with another twelve expected in 2015 and beyond.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns one of the youngest and highest quality portfolios of seniors housing and care facilities with 47 properties - 12 in two Canadian provinces and 35 in eight U.S. states - for a total of 4,635 beds. 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.
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 Annual Information Form dated March 6, 2013 under the section "Risk Factors," a copy of which can be obtained at www.sedar.com. In addition, the securities to be acquired by the REIT in the fund will be relatively illiquid and the REIT's acquisition will represent a minority interest and, as such, the REIT will have no control over the Fund. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.
The securities of Mainstreet Development Fund II, L.P., have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States or Canada without registration or the filing of a prospectus or an applicable exemption from the registration or prospectus requirements of the Act or applicable Canadian securities laws. This news release does not constitute an offer for sale of these securities in the United States of America or Canada.
SOURCE: HealthLease Properties Real Estate Investment Trust
For further information:
Executive Vice President - Finance
HealthLease Properties REIT
(416) 815-0700 ext. 258