Press release from CNW Group
NorthWest Healthcare Properties Real Estate Investment Trust Announces Calgary Acquisition
Wednesday, November 30, 2011
NorthWest Healthcare Properties Real Estate Investment Trust Announces Calgary Acquisition16:51 EST Wednesday, November 30, 2011TORONTO, Nov. 30, 2011 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) ("NorthWest" or the "REIT") announced today that it has entered into an agreement to acquire 82% of 40 Sunpark Plaza SE, a 66,500 square foot medical office condominium property in Calgary. The purchase is expected to close in the fourth quarter of 2011, subject to customary closing conditions and is expected to be immediately accretive.Located in an expanding market node within a rapidly growing core market for the REIT, 40 Sunpark Plaza SE is a recently built medical office condominium building that has become a well-established healthcare property in the South Calgary market due to its favourable location, tenant mix and appealing design. The 54,600 square feet being acquired is currently 74% leased to a strong roster of healthcare tenants that is anchored by a large medical clinic, South Calgary Medical Clinic, under a long term lease. Additional healthcare users include LifeMark Health, Radiology Consultants Associated and Shoppers Drug Mart. The property benefits from its immediate adjacency to the South Calgary Health Centre and will be NorthWest's closest asset to the new, soon to be completed, South Calgary Hospital. There is an opportunity for significant value creation through the lease-up of the currently vacant space.The purchase price will be $11.85 million, subject to adjustments. NorthWest will assume the vendor's existing mortgage, having a principal amount of approximately $10.13 million, an interest rate of 5.87% and a 2013 maturity. The equity portion of the REIT's investment will be funded from existing resources.The investment will be the REIT's eighth acquisition in Greater Calgary and its thirteenth asset in the Province of Alberta, including the recently announced pending acquisition of Willow Brook Medical Centre in Airdrie. The REIT believes that the acquisition of 40 Sunpark Plaza SE will further solidify its market leadership in healthcare real estate in Calgary, in the Province of Alberta and in Canada.About NorthWest Healthcare Properties Real Estate Investment TrustNorthWest Healthcare Properties Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT holds a portfolio of 56 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 3.9 million square feet of gross leasable area located in British Columbia, Alberta, Ontario, Québec, Nova Scotia and New Brunswick.This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.For further information: Mike Brady, Senior Vice President, NorthWest Healthcare Properties Real Estate Investment Trust, (416) 366-2000 ext. 243, or www.nwhp.ca.