HealthLease Properties Real Estate Investment Trust Completes $110 Million Initial Public Offering

TORONTO, June 20, 2012 /CNW/ - 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.

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.

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".

Mainstreet Property Group, LLC ("Mainstreet") will indirectly retain an approximate 17.9% (or an approximate 16.6% interest in the REIT if the over-allotment option is exercised in full) interest in the REIT (on a fully exchanged basis) through the ownership of Class B limited partnership units of a subsidiary of the REIT, which are economically equivalent to (subject to certain adjustments), and exchangeable for, trust units of the REIT.

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 that investors have expressed in this offering.  We will work hard toward our goal of maximizing unitholder value."

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.

Paul Ezekiel Turner
Chief Executive Officer
HealthLease Properties Real Estate Investment Trust
317-420-0205