Mainstreet Health plans senior housing deals after Canadian listing

Thu Jun 2, 2016 12:12pm EDT
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By John Tilak

TORONTO (Reuters) - Mainstreet Health Investments Inc (HLPu.TO: Quote) is looking to spend hundreds of millions of dollars to acquire senior housing and care properties in Canada and the United States after tapping the Canadian equity market, a top executive said.

The company, which owns a portfolio of U.S. seniors housing and care properties, on Thursday raised about $95 million and listed on the Toronto Stock Exchange.

The move is an attempt to emulate the model deployed at Healthlease Properties, a real estate investment trust that was listed in Toronto in 2012 and sold to Health Care REIT - now called Welltower Inc (HCN.N: Quote) - for about C$1 billion ($762.20 million) in 2014.

Healthlease was launched by Carmel, Indiana-based Mainstreet Investments, the biggest U.S. developer of post-acute health care properties and the company behind Mainstreet Health.

Several top executives at Mainstreet Health have held roles at Healthlease and are part of the parent's executive team.

“It’s the same team. It’s the same strategy. It’s the same opportunity. Here we go again,” said Scott White, president of Mainstreet Health, which is listing under the same ticker symbol that Healthlease held, HLPu.TO.

Mainstreet Health has also attracted interest from several investors in Healthlease, White said on Thursday in an interview with Reuters.

The company owns a portfolio of 11 properties in the Chicago area. It acquired them with the help of U.S. hedge fund Magnetar Financial, which owns about half of Mainstreet Health.   Continued...