Legacy Healthcare REIT to Float IPO This Week

| About: Legacy Healthcare (LRP)

Legacy Healthcare Properties Trust (NYSE:LRP), a self-advised real estate company which acquires income-producing senior housing facilities, is expected to price its IPO this week.

Business Overview (from prospectus)

We are a self-advised real estate company that was recently organized to acquire, own and actively asset manage income-producing senior housing facilities that derive substantially all of their revenues from private payment sources, generate stable cash flows and have the potential for long-term capital appreciation. Shortly after completion of this offering and the concurrent private placement, we expect to complete the acquisition of six high quality senior housing facilities located in Florida, Illinois, New Jersey, New York and Virginia for an aggregate contractual purchase price of $246.0 million excluding transaction costs and the assumption of certain deposit liabilities. We believe the markets in which these facilities are located exhibit strong demand, high barriers to entry and limited new supply. These facilities contain 1,042 independent and assisted living units with a weighted average occupancy of approximately 88.7% for the six months ended June 30, 2010. Substantially all of the revenues at these facilities are derived from private payment sources. The acquisition of these facilities demonstrates our ability to execute our growth strategy and acquire senior housing facilities that meet our targeted acquisition criteria.

Offering: 8.8 million shares at $20 per share. Net proceeds of approximately $92.5 million from the offering will be used to fund the cash portion of contractual purchase price for the six senior housing facilities and closing costs to acquire it.

Lead Underwriters: Jefferies & Co. (JEF), Stifel Nicolaus (NYSE:SF)

Financial Highlights:

The company was incorporated on April 7, 2010 and it will acquire WSL Holdings IV, LLC, as a result of which it will operate through its subsidiaries.


We expect to compete for investment opportunities with institutional investors, private equity investors, other REITs and numerous local, regional and national owners, in each of our target markets. Some of these entities may have substantially greater financial resources than we do and may be able and willing to accept more risk than we can prudently manage. Competition generally may increase the bargaining power of property owners seeking to sell and reduce the number of suitable investment opportunities offered to us or purchased by us.

Additional Resources: