TORONTO, Aug. 12, 2013 /PRNewswire/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") has agreed to acquire a newly-built, triple-net leased, 100-unit seniors housing and care facility from Mainstreet Property Group, LLC ("Mainstreet"), the asset and property manager for the REIT. The facility is leased on a triple-net basis to Life Care Services ("LCS"), a leading US provider of seniors housing and care, with retirement communities serving over 28,000 residents in 29 states.
The facility, Wellbrooke of Avon, is located in Hendricks County, Indiana, and marks the third installment of the Wellbrooke brand in the state. 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. Of the 100 units at Avon, 70 are licensed to provide skilled nursing, rehabilitation and therapy services, while the other 30 provide assisted living.
"We continue our strong commitment to growth by adding yet another Class A+ property to our fast growing portfolio," stated Zeke Turner, Chairman and CEO of the REIT. "Our partnership with LCS increases our diversity among leading seniors housing care operators and further strengthens our profile as a key real estate partner."
Avon will be acquired under the REIT's pre-existing development agreement with Mainstreet that provides the REIT with a right to acquire any seniors housing and care properties developed by Mainstreet. Subject to the approval of the TSX and the satisfaction of other customary closing conditions, HealthLease will acquire the property for its appraised value of $17,130,000. The expected initial rental income for this property will be $1,383,000 per year.
Wellbrooke of Avon is the fifth property developed by Mainstreet for the REIT. Most recently, the REIT announced in July its agreement to acquire one development property, Wellbrooke of Westfield, located in Hamilton County, IN. Prior to that, the REIT announced in February 2013 the completion by Mainstreet of three development properties - two in Indiana and one in Illinois - which were purchased by the REIT in its initial public offering. 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.
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, is known for acquiring and 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.
Forward-Looking Information
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
