Mainstreet Property Group, LLC sells facility to HealthLease Properties Real Estate Investment Trust in exchange for exchangeable units

CARMEL, IN, July 2, 2013 /CNW/ - Mainstreet Property Group, LLC ("Mainstreet") announced today that, in connection with the acquisition by HealthLease Properties Real Estate Investment Trust (the "REIT") of a newly-built, fully-leased 100-unit seniors housing and care facility from Mainstreet (the "Acquisition"), Mainstreet received, as consideration, beneficial ownership of (a) an aggregate of 446,481 special voting units ("Special Voting Units") of the REIT, together with (b) the corresponding 446,481 class B limited partnership units ("Class B Units") of a subsidiary limited partnership of the REIT, which Class B Units are economically equivalent to and exchangeable for REIT units on a one-for-one basis. The Class B Units issued to Mainstreet in connection with the Acquisition represent a 2.1% interest in the REIT (on a fully exchanged basis).  Mainstreet remains the sole owner of the Class B limited partnership units.

Following the Acquisition, Mainstreet has beneficial ownership over 2,846,481 Class B Units and 19,400 REIT units, representing in the aggregate a 13.5% interest in the REIT (on a fully exchanged basis).

The consideration payable in connection with the Acquisition was US$20,330,000, which was satisfied with a combination of assumed debt and 446,481 Class B Units, which were issued based on a volume-weighted average closing price of the REIT's units on the Toronto Stock Exchange for the 20 trading-day period ending on June 28, 2013.

Mainstreet's interest in the REIT may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation and the terms of the development agreement between the REIT and Mainstreet.

Further information (including a copy of the report to be filed with Canadian securities regulators in connection with this transaction) can be obtained by contacting Scott White:

Mainstreet Property Group, LLC
14390 Clay Terrace Blvd, Suite 205
Carmel, IN. 46032
[phone]

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a portfolio of seniors housing and care facilities located in the United States and Canada.  The facilities are leased to experienced tenant operators who have significant operational experience in the U.S. and Canada. The leases are structured as long-term and triple-net, features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio of properties meets the needs of modern seniors by emphasizing features such as hotel-like design, private rooms and baths, and hospitality-inspired amenities.  For more information, visit www.hlpreit.com.

About Mainstreet Property Group

Indiana-based Mainstreet Property Group, the largest skilled nursing developer in the United States, is known for acquiring and developing desirable, concierge-based health care properties with a hotel-like atmosphere for a variety of short-term and long-term needs. The company's innovative and industry-leading Next Generation™ design meets the demands of the Baby Boomer, including communities with 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 2010, 2011, and 2012. For additional information, visit www.mainstreetcap.net.

Forward-Looking Information
This news 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 AIF dated March 6, 2013 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.

SOURCE: HealthLease Properties Real Estate Investment Trust

Scott White
Executive Vice-President, Finance
HealthLease Properties REIT
[phone]
[email protected]

Renée Lam
Investor Relations
TMX Equicom
[phone] ext. 258
[email protected]