HealthLease Properties REIT Completes Initial Public Offering

HealthLease Properties Real Estate Investment Trust (the “REIT”) completed its initial public offering of 11,000,000 trust units at a price of $10.00 per unit for gross proceeds of $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, which if exercised in full, will increase the total deal size, including management's retained interest, to more than $145 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 per cent 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 has been 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 directly or indirectly 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.

The REIT was represented in Canada by Goodmans LLP with a team led by Stephen Pincus (corporate/securities) and including Jon Northup and Jarrett Freeman (tax); Mark Spiro and Chat Ortved (corporate/securities); Andrew Wiseman (real estate) and Michelle Roth (healthcare). The REIT was represented in the US by Krieg DeVault LLP with a team that included Karen Woods, Nicholas Chulos, Timothy Harden and Cate Sabatine (corporate/securities), Paul Lindemann (tax) and Chris Long (real estate).

The underwriters were represented by Davies Ward Phillips & Vineberg LLP with a team in Canada that included Shawn McReynolds, Jim Reid, Mindy Gilbert, Tiffany Jung and Jennifer Prieto (corporate/securities), John Ulmer and Raj Juneja (tax) and Gabriella Lombardi and Ioana Hancas (real estate), and a team in the US that included Scott Tayne and Chris Lankin (corporate/securities), Abe Leitner (tax) and Harry Heching (real estate).

Lawyer(s)

Jarrett Freeman Gabriella Lombardi Chat Ortved Mindy B. Gilbert Raj Juneja John M. Ulmer Stephen N. Pincus Andrew S. Wiseman James R. Reid Harry G. Heching D. Shawn McReynolds Mark Spiro Abraham Leitner Jon Northup Tiffany Jung Scott Tayne Michelle Roth

Firm(s)

Goodmans LLP Davies Ward Phillips & Vineberg LLP Krieg Devault LLP