Mainstreet Health Investments Inc. Announces Acquisition of Three Property Transitional Care Portfolio

TORONTO, Nov. 2, 2017 /CNW/ - Mainstreet Health Investments Inc. (TSX:HLP.U) (the "Company") announced today it has entered into a definitive agreement to acquire three state-of-the-art post-acute transitional care facilities (collectively, the "Properties") from Mainstreet Property Group, LLC ("MPG") for a price of approximately US$67.0 million. The Company has the right to acquire the properties as a result of the mezzanine debt investments made pursuant to its development agreement with MPG.

The Company intends to fund the transaction through the combination of the assumption of debt, the retirement of mezzanine loans on the projects, cash on hand, and the sale of the Company's transitional care facility in Wichita, Kansas to MPG.  The sale of the facility in Wichita to MPG for $22.8 million was previously announced.

The portfolio includes two operators and three recently developed facilities in Texas, Missouri and Nebraska. The acquisition is expected to be accretive to the Company's Adjusted Funds from Operations ("AFFO").

Location

Operator

Beds

Columbia, Missouri

Providence Healthcare Group

70 Beds

Omaha, Nebraska

Hillcrest Healthcare System

76 Beds

Houston, Texas

Providence Healthcare Group

70 Beds

 

"We are excited to increase our presence in Texas while expanding into Nebraska and Missouri," noted Adlai Chester, the Company's Chief Investment Officer. "This transaction demonstrates our ability to grow our portfolio with existing operating partners and leverage our development relationships."

Upon closing the transaction, the Company's portfolio will expand to 40 properties with close to 5,000 beds across 10 U.S. states and one Canadian provinceThe facilities located in Missouri and Texas will expand the partnership with Providence Healthcare Group to three properties. The facility located in Nebraska will be the first with Hillcrest Healthcare System. 

The proposed transaction is subject to a number of closing conditions, including satisfactory completion of due diligence. There can be no assurances that any such conditions will be satisfied or that the transaction will be consummated.

About Mainstreet Health Investments Inc.

Mainstreet Health Investments Inc. is a North American health care real estate company with a growing portfolio of high-quality properties located in the United States and Canada and operated by best-in-class senior living and care operators primarily under long-term leases. Its mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.mainstreethealthinvestments.com.

Forward-looking Information

This press release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for the Company. Forward-looking statements generally can be identified by words such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", or "continue" or similar expressions suggesting future outcomes or events. More particularly and without limitation, this press release contains forward looking statements and information concerning the completion of the acquisition of the Properties. Such forward-looking statements reflect the Company's current beliefs and are based on information currently available to management. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, the conditions to the acquisition of the Properties not being satisfied or waived. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof and to not use such forward looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Mainstreet Health Investments Inc.

 

For further information: Adlai Chester, Chief Investment Officer, achester@maininvest.com; Investor Relations, (317) 582-6971, ir@mainstreethealthinvestments.com