HealthLease Properties REIT Files Final Prospectus for Initial Public Offering

HealthLease Properties Real Estate Investment Trust announced that it has filed, and obtained a receipt for, a final prospectus for its initial public offering of 11,000,000 trust units with the securities commissions of all provinces and territories in Canada. The trust units will be issued at a price of $10.00 per unit. Gross proceeds of the Offering are expected to be $110 million. The REIT has granted to the underwriters of the Offering an option to purchase up to an additional 1,100,000 trust units at a price of $10.00 per trust unit for a period of 30 days after closing of the Offering and, if exercised in full, will increase the total gross proceeds of the Offering to $121 million.

The Offering is being underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Dundee Securities Ltd., GMP Securities L.P. and Raymond James Ltd.

The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the trust units under the symbol "HLP.UN", subject to fulfilling all of the requirements of the TSX.

The Offering is expected to close on June 20, 2012. On closing of the Offering, it is expected that Mainstreet Property Group, LLC ("Mainstreet") will indirectly hold a 17.9% interest in the REIT (on a fully exchanged basis) through the ownership of Class B limited partnership units of a subsidiary of the REIT, which are economically equivalent to, and exchangeable for, trust units of the REIT.

On closing of the Offering, the REIT will use the net proceeds of the Offering to directly and indirectly acquire a portfolio of nine seniors housing and care properties owned by a wholly owned affiliate of Mainstreet (including three pre-leased development properties, which are currently under development and are expected to be completed within 12 months following closing of the Offering) and six seniors housing and care properties owned by a subsidiary of Northern Property Real Estate Investment Trust, to repay debt in respect of certain of the acquired properties and for working capital purposes.

The REIT initially intends to make monthly cash distributions of $0.07083 per trust unit to holders of trust units. The first distribution of the REIT will be for the period from closing to July 31, 2012 and will be paid on or about August 15, 2012, in the amount of $0.0978 per trust unit assuming closing occurs on June 20, 2012. Declared distributions will be paid on or about the 15th day of each month to unitholders of record at the close of business on the last business day of the immediately preceding month.


 

on June 18, 2012