HealthLease Properties REIT Completes $110 Million Initial Public Offering

TORONTO, June 20, 2012 /PRNewswire/ -- HealthLease Properties Real Estate Investment Trust (the "REIT") announced today that it has completed its initial public offering of trust units, raising gross proceeds of $110 million. A total of 11,000,000 trust units were sold at a price of $10.00 per trust unit.

Cicero, Indiana-based senior housing developer Mainstreet Property Group, LLC, led by chairman & CEO Zeke Turner, will indirectly hold a 17.9% interest in the REIT through the ownership of Class B limited partnership units of a subsidiary of the REIT.

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, which, if exercised in full, will increase the total gross proceeds of the Offering to approximately $121 million.

Zeke Turner, Chief Executive Officer of the REIT and Mainstreet, commented that, "We are excited about the initial public offering of HealthLease Properties REIT. We believe our portfolio is a fantastic platform on which to further develop the potential of the REIT. It is humbling to see the interest investors have expressed in this offering.  We will work hard toward our goal of maximizing unitholder value."

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 trust units will commence trading today on the Toronto Stock Exchange under the symbol "HLP.UN".

Properties to be purchased by the REIT:

Currently owned by Mainstreet Property Group and being transferred to the REIT:
Alexandria Care Center, Alexandria, Indiana
Avalon Springs Health Campus, Valparaiso, Indiana
Brookville Healthcare Center, Brookville, Indiana
Highland Manor Health and Living, Indianapolis, Indiana
Marion Rehab & Assisted Living, Marion, Indiana
Miller's Merry Manor of Marion, Marion, Indiana
The Bridge Care Suites, Springfield, Illinois
Mishawaka, Indiana facility (under construction)
Wabash, Indiana facility (under construction)

Additional properties being purchased by the REIT:
Beverly Centre-Glenmore, Calgary, Alberta
Beverly Centre-Lake, Calgary, Alberta
Columbia Assisted Living, Lethbridge, Alberta
Harmony Court Care Centre, Burnaby, British Columbia
Orchard Manor, Brooks, Alberta
Valleyview Care Centre, Medicine Hat, Alberta

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 $0.09781 per trust. 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.

These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States.

This press 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 final prospectus dated June 8, 2012 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.

About HealthLease Properties Real Estate Investment Trust
The REIT has been formed to own, develop and acquire seniors housing and care properties, which are leased to experienced operators. The REIT will own the land and buildings and lease them to operators on a long-term, triple-net lease basis. The operators provide and manage the service offerings available at the facilities, deliver all care services and maintain the buildings. On closing of the Offering and completion of the transactions described in the REIT's final prospectus dated June 8, 2012 (a copy of which can be obtained at www.sedar.com), the REIT will directly or indirectly acquire a portfolio of nine seniors housing and care properties owned by a wholly-owned affiliate of Mainstreet Property Group, LLC and six seniors housing and care properties owned by a subsidiary of Northern Property Real Estate Investment Trust.

About Mainstreet Property Group
Providing healthcare for a variety of short-term and long-term needs, Cicero, Indiana, based Mainstreet Property Group offers guests concierge-based health care in a hotel-like atmosphere. Mainstreet's Next Generation™ design includes 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 both 2010 and 2011. It has been listed as the third-fastest growing private company in the area by the Indianapolis Business Journal and one of 41 "Companies to Watch" in the state by the Indiana Economic Development Corporation, Purdue University and the Edward Lowe Foundation. For additional information, visit http://www.mainstreetcap.net

For further information, please contact:
Kate Snedeker
Mainstreet Property Group
317-420-0205
[email protected]

SOURCE Mainstreet Property Group