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HealthLease Properties REIT makes US$141.7M acquisition of 13 properties in U.S.

TORONTO – HealthLease Properties Real Estate Investment Trust (TSX:HLP.UN) said Thursday it has signed a deal for 13 senior housing and care properties located in North Carolina, Pennsylvania and Virginia for US$141.7 million.

The acquisition includes four skilled-nursing facilities, eight assisted-living and Alzheimer’s facilities and one standalone Alzheimer’s facility.

The deal will increase the trust’s portfolio to 28 facilities including a total of 2,909 beds in five states and two provinces.

To help pay for the deal, HealthLease said it has signed a deal with a syndicate of underwriters to raise C$60 million in an offering of 5.8 million trust units at a price of C$10.35 per unit.

HealthLease has also granted the underwriters an over-allotment option for up to an additional 870,000 units under the same terms and conditions.

The trust also inked a deal to replace its current operating line of credit with a new US$110.0 million operating line of credit — US$83.8 million of which will be drawn on at closing to partially fund the acquisition.

HealthLease owns a portfolio of senior housing and care facilities in the United States and Canada.

Units in the trust were down eight cents at C$10.72 on the Toronto Stock Exchange.