HealthLease Properties Real Estate Investment Trust Completes Initial Public Offering
|Areas||Commercial Real Estate, Corporate Finance and Securities, Health Care Law, REITs and Income Securities, Tax|
Goodmans represented HealthLease Properties Real Estate Investment Trust (the REIT) in the completion of its initial public offering of 11,000,000 trust units at a price of $10.00 per unit for gross proceeds of $110 million that closed on June 2012. On July 12, 2012, the underwriters exercised their over-allotment option and purchased an additional 1,100,000 trust units at $10.00 per trust unit for gross proceeds of $11,000,000 which increased the total gross proceeds of the offering to $121 million.
The offering was 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 REIT used the net proceeds of the offering principally to directly and indirectly acquire two separate portfolios of assets: nine seniors housing and care properties from Mainstreet Property Group, LLC (which will hold a 17.9% interest in the REIT) and six seniors housing and care properties from a subsidiary of Northern Property Real Estate Investment Trust. The balance of the net proceeds was used to repay debt in respect of certain of the acquired properties and for working capital purposes.
The REIT was formed to own, develop and acquire seniors housing and care properties, which are leased to experienced operators on a triple net basis. This is Canada’s first “pure play” real estate REIT in the seniors housing sector. The REIT owns the land and buildings and leases them to operators who provide and manage the service offerings available at the facilities, deliver all care services and maintain the buildings. The REIT has acquired a portfolio of 12 seniors housing and care properties located in the state of Indiana and the provinces of British Columbia and Alberta and three pre-leased development properties located in the states of Indiana and Illinois.