HealthLease Properties Real Estate Investment Trust Files Final Prospectus for Initial Public Offering

/NOT FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, June 14, 2012 /CNW/ - HealthLease Properties Real Estate Investment Trust (the "REIT") announced today that it has filed, and obtained a receipt for, a final prospectus for its initial public offering of 11,000,000 trust units (the "Offering") with the securities commissions of all provinces and territories in Canada. The trust units will be issued at a price of $10.00 per unit. Gross proceeds of the Offering are expected to be $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 of the Offering and, if exercised in full, will increase the total gross proceeds of the Offering to $121 million.

The Offering is being 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 Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the trust units under the symbol "HLP.UN", subject to fulfilling all of the requirements of the TSX.

The Offering is expected to close on June 20, 2012. On closing of the Offering, it is expected that Mainstreet Property Group, LLC ("Mainstreet") will indirectly hold a 17.9% 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, and exchangeable for, trust units of the REIT.

On closing of the Offering, the REIT will use the net proceeds of the Offering to directly and indirectly acquire a portfolio of nine seniors housing and care properties owned by a wholly owned affiliate of Mainstreet (including three pre-leased development properties, which are currently under development and are expected to be completed within 12 months following closing of the Offering) and six seniors housing and care properties owned by a subsidiary of Northern Property Real Estate Investment Trust, to repay debt in respect of certain of the acquired properties and for working capital purposes.

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 $0.0978 per trust unit assuming closing occurs on June 20, 2012. 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. Copies of the final prospectus will be available on SEDAR at www.sedar.com.

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 of America.

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. 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, the REIT will directly or indirectly acquire 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.

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