Mainstreet Health Investments Inc. Completes Acquisitions of Interests in Seniors Housing Properties and Internalization

Goodmans LLP represented Mainstreet Health Investments Inc. (the "Company") who on November 1, 2016, completed the acquisitions of interests in seven seniors housing and care properties and investments in five mezzanine loans (collectively, the "Transactions"). The Company has:

• Acquired four Next Generation® post-acute transitional care properties located in Texas and Kansas;
• Acquired one post-acute transitional care and memory care facility located in Chicago;
•  Acquired a 50% interest in two assisted living properties located in Sudbury and North Bay, Ontario, together with the operating assets related thereto (the "Autumnwood Properties"), on a joint venture basis with Autumnwood Lifestyles Inc. ("Autumnwood"). This purchase represents the company's first acquisition of seniors housing and care properties in Canada; and
• Invested in five mezzanine loans with purchase options for development projects located in Arizona, Colorado and Nebraska.

The aggregate purchase price for the Transactions was approximately US$152 million and was financed with: (i) the net proceeds of the Company's public offering of subscription receipts, including proceeds from the over-allotment, completed on October 6, 2016; (ii) the assumption of approximately US$65.7 million of existing property-level indebtedness; (iii) the issuance of approximately US$3.6 million of common shares to certain vendors of the Autumnwood Properties; and (iv) cash on balance sheet.

On November 4, 2016, the Company acquired a 50% interest in two additional assisted and independent living properties located in Timmins and Sudbury, Ontario, together with the operating assets related thereto, on a joint venture basis with Autumnwood.  The aggregate purchase price for the 50% interest in the two properties was approximately US$22.6 million, which was financed by the assumption of approximately US$12.9 million of property level indebtedness, approximately US$2.6 million of common shares to certain vendors and cash on balance sheet.

Concurrent with the completion of the Transactions, the Company terminated the Company's existing asset management agreement with Mainstreet Asset Management, Inc., the Company's external manager, and internalized its senior management team.