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Local developer files to go public in Canada

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A locally based developer and owner of senior health care centers has filed to go public as a real estate investment trust in Canada.

Mainstreet Property Group LLC hopes to roll nine of its properties—along with six more it plans to acquire in Canada—into a company called HealthLease Properties Real Estate Investment Trust, which would trade on the Toronto Stock Exchange.

The Cicero-based company is seeking to raise $110 million, according to a preliminary prospectus filed in Canada on Tuesday. The shares would begin trading in June.

Mainstreet CEO Paul Ezekiel "Zeke" Turner declined to comment on the plans, citing Canadian securities rules. Turner, 34, was named this year to IBJ's Forty Under 40.

Going public in Canada can be cheaper for small and mid-size companies because of fewer regulations.

Initial public offerings by REITs have been particularly well received, though the last company to attempt to go public in the senior-care sector did not wind up offering shares, Canada's Globe and Mail newspaper noted in an online report. Renaissance Lifestyle Communities shelved its IPO last year because of rocky market conditions and questions from regulators.

If successful, HealthLease Properties plans to use the proceeds of its offering to acquire a portfolio of 15 properties, including nine from Mainstreet and six that the company intends to purchase from a subsidiary of Northern Property Real Estate Investment Trust, a Canadian firm focused on multifamily properties, according to offering materials.

The Mainstreet properties are in Indiana and Illinois, and the ones from Northern Property are in British Columbia and Alberta. The deal includes facilities in Indianapolis, Alexandria, Marion, Valparaiso, Mishawaka and Wabash.

HealthLease plans to lease its senior-care centers to long-term operators who are responsible for all services to residents and maintenance of the buildings, which theoretically minimizes risk to investors.

Both HealthLease and privately held Mainstreet, which will own 20 percent of the new company, will remain headquartered in central Indiana.

Turner founded Mainstreet in 2002. The company has been ranked among the fastest-growing companies in the Indianapolis area by IBJ the past three years. It had revenue of $9.6 million in 2010, up from $6.3 million in 2008.

In the video below for IBJ's Forty Under 40 profile, Turner discusses Mainstreet's plans for expanding its senior-housing offerings into more states.

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  1. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

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