TORONTO, Oct. 16, 2012 /CNW/ - HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) ("HealthLease" or "the REIT") today announced that it has amended its lease agreements with the tenant at its Alexandria Care Center and Brookville Healthcare Center facilities located in the State of Indiana. The amendments allow the tenant to partner with a hospital system, further enhancing quality in operations while still maintaining all landlord rights and remedies as dictated in the master lease agreements. The tenant will continue to manage the facilities and the triple-net lease structure remains in place. As a result of the amendments, HealthLease will receive an additional $185,415 annually in rental income from the properties.
"We are pleased to have completed this lease amendment, as the revised terms are favourable to both HealthLease and our tenant, particularly in bringing a hospital system into the daily operations," said Zeke Turner, Chairman and CEO, HealthLease Properties REIT. "The incremental rental income translates to an additional $2.2 million in value to the REIT based on the capitalization rate applied to our initial public offering in June."
In addition, Mainstreet Property Group LLC, the external manager of the REIT, notified the REIT that it has more than US$60 million in projects under development in which construction is anticipated to commence in the next 60 days. The four development projects are located in the communities of Avon, Indiana; Castleton, Indiana; Crawfordsville, Indiana; and Kokomo, Indiana. These new health campuses, once completed, will include both skilled care and assisted living options, and will offer private rooms, private baths, restaurant-style dining and a host of social amenities for both short-term and long-term care needs. HealthLease Properties REIT has a right to purchase each of these four properties upon completion of construction. Construction of the properties is scheduled to be completed in the third and fourth quarters of 2013.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a portfolio of seniors housing and care facilities located in the Midwestern U.S. and Western Canada. Its 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. 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. For more information, visit www.hlpreit.com.
SOURCE: HealthLease Properties Real Estate Investment Trust
For further information:
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106
(416) 815-0700 ext. 242