Mainstreet Health Investments Inc. Announces the Acquisition of Three Memory Care Communities
TORONTO, DECEMBER 20, 2016 – Mainstreet Health Investments Inc. (TSX: HLP-U) (“the “Company“) announced today that it has closed on the previously announced acquisition of a portfolio of three memory care communities (collectively, the “Properties“) comprising 171 units for an aggregate purchase price of US$44.3 million.
The Properties are located in Little Rock, Arkansas and New Braunfels & San Antonio, Texas and are leased to Memory Care America, LLC (“MCA“) under 15 year absolute-net leases. The Properties expand the Company’s United States portfolio and enhance its payor mix, as 100% of revenue is expected to be derived from private pay funding sources.
The Properties were developed by Embree Group of Companies (“Embree“), a leading national developer of healthcare and senior living facilities with operations across the United States. As part of the transaction, the Company anticipates it will receive a first right to fund and acquire the next three senior housing projects developed by Embree and operated by MCA, the first of which is expected to break ground in 2017.
“We are pleased to expand our high quality portfolio with three newly developed assets dedicated to memory care related services”, said Scott White, president and chief operating officer. “We are also excited about the ability to partner with both Embree and MCA on future projects. This is another example of our team’s deep industry relationships and our ability to grow our portfolio.”
2016 Highlights
The Company executed the following key transactions in 2016:
- Successfully raised over US$183 million of equity and US$45 million of convertible debentures through public offerings of common shares and subscription receipts of the Company;
- Acquired interests, directly or indirectly, in 35 high quality senior housing and care properties located throughout the United States and in Ontario, Canada; and
- Funded mezzanine loans for 10 transitional care properties in development by Mainstreet Property Group, the terms of which provide the Company with an option to acquire each property.
About Mainstreet Health Investments Inc.
Mainstreet Health Investments Inc. is a healthcare real estate company with a portfolio of high quality properties located in the United States and Canada. Our properties are operated by best-in-class healthcare providers primarily 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.
For further information: Investors, Mr. Randy Henry, Director – Investor Relations, 1-317-582-6971, rhenry@maininvest.com; Media, Ms. Ashley Mattox, Communications Manager, 1-317-582-6986, amattox@maininvest.com