TORONTO, Sept. 4, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") closed its recently announced acquisition of Wellbrooke of Avon through its development agreement with Mainstreet Property Group, LLC ("Mainstreet"). The 100-unit facility is located in Hendricks County, Indiana and has been fully leased on a long-term, triple-net basis to Life Care Services ("LCS"), a leading US provider of seniors housing and care. HealthLease has acquired the property for its appraised value of $17,130,000 with an expected initial rental income of $1,383,000 per year.
Mainstreet received, as consideration, beneficial ownership of (a) an aggregate of 48,241 special voting units ("Special Voting Units") of the REIT, together with (b) the corresponding 48,241 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% interest in the REIT (on a fully exchanged basis).
This transaction has been conditionally approved by the Toronto Stock Exchange.
"The addition of Avon to our growing portfolio is a reflection of our momentum and our vision to transform the industry by adding high-quality facilities focused on less hospital, more hospitality™," stated Zeke Turner, Chairman and CEO of the REIT. "Since our IPO last June, we have almost tripled our assets and continue to identify and assess opportunities to add to our strong and growing portfolio."
The Avon health care resort™ is comprised of 100 units; 70 are licensed to provide skilled nursing, rehabilitation and therapy services, while the other 30 provide assisted living. This Next Generation™ facility is a hallmark of Mainstreet's market-leading approach to health care property design and development. Next Generation™ designs offer hotel-like properties that transform seniors housing and care into a hospitality experience by incorporating concierge-based services. The designs specifically cater to the evolving demands of the growing senior population.
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 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 premier properties 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 Mainstreet Property Group
Indiana-based Mainstreet Property Group, one of the most-innovative developers of health care real estate in the United States, focuses on 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™ designs meet 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 statements.
SOURCE: HealthLease Properties Real Estate Investment Trust
For further information:
Executive Vice-President, Finance
HealthLease Properties REIT
(416) 815-0700 ext. 258