Mainstreet Health Investments Inc. Announces Completion of Acquisitions and Internalization
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TORONTO, NOVEMBER 1, 2016 – Mainstreet Health Investments Inc. (TSX:HLP.U) (the “Company“) today announced that it has completed the previously announced 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 Ontario, together with the operating assets related thereto (the “Autumnwood Properties“), on a joint venture basis with Autumnwood Lifestyles Inc. (“Autumnwood“); 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 (assuming an exchange rate of Cdn$1.00 equals US$0.76 for purposes of the acquisition of the Autumnwood Properties), 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.
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 asset management functions.
“We are pleased that within five months of our initial public offering, we were able to expand our portfolio, including two assets in Canada, and internalize our management team,” said Adlai Chester, chief executive officer of the Company. “The assets acquired provide operator, geographic and product type diversity to our portfolio.”
About Mainstreet Health Investments Inc.
Mainstreet Health Investments Inc. is a North American healthcare real estate company with a growing portfolio of high quality properties located in the United States and Canada. Our properties are operated by best-in-class healthcare providers under long-term, triple net leases. Our mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.mainstreethealthinvestments.com.
SOURCE Mainstreet Health Investments Inc.
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