Press release from CNW Group
NorthWest Healthcare Properties Real Estate Investment Trust Announces Toronto and Ottawa Acquisitions
Tuesday, August 14, 2012
NorthWest Healthcare Properties Real Estate Investment Trust Announces Toronto and Ottawa Acquisitions14:06 EDT Tuesday, August 14, 2012TORONTO, Aug. 14, 2012 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the "REIT") announced today that it has entered into an agreement to acquire 84% of 807 Broadview Avenue, a 54,720 square foot medical office condominium property in Toronto. The purchase is expected to close in the third quarter of 2012, subject to customary closing conditions and is expected to be immediately accretive.Located in a well-established Riverdale neighbourhood northeast of the downtown core, 807 Broadview Avenue is a recently constructed, design built, medical office condominium building that benefits from a central location and a modern design. The 45,770 square feet being acquired is 100% leased on a long term basis to the Albany Medical Clinic, a large full service Family Health Group that represents one of Canada's oldest, and one of Toronto's largest, healthcare clinics. The clinic is anchored by a large number of both general practitioners and medical specialists who are complemented by ancillary healthcare services that include laboratory, diagnostic imaging, dental, psychology and physiotherapy.The purchase price will be $16.44 million, subject to adjustments. NorthWest will assume and expects to increase and extend the vendor's existing first mortgage which, once increased and extended, will have an aggregate principal amount of approximately $10.5 million, a weighted average interest rate of approximately $4.3% (subject to bond rate fluctuations) and a 2022 maturity. The equity portion of the REIT's investment will be funded from existing resources. The investment will be the REIT's thirteenth acquisition in Toronto.In a separate transaction, the REIT has entered into agreements to acquire a controlling interest in Smyth Medical Centre, a 35,000 square foot medical office condominium property in Ottawa. The purchases are expected to close in the third quarter of 2012, subject to customary closing conditions and are expected to be immediately accretive.Located just east of downtown, Smyth Medical Centre (1929 Russell Road) is a premier building in the Ottawa medical office market due to its favourable location, diversified healthcare tenant mix and appealing design. The property is well-leased to primarily healthcare related uses that include pharmacy, laboratory, physiotherapy, dental and specialist physicians who benefit from the building's close proximity to the Ottawa Hospital General Campus.The purchase price will be $3.5 million, subject to adjustments. The condo units are being acquired free and clear of mortgages, providing an opportunity to secure longer term financing in due course. The equity portion of the REIT's investment will be funded from existing resources.The investment will be the REIT's first acquisition in the Ottawa area and its twenty-sixth asset (including 807 Broadview Avenue) in the Province of Ontario. The REIT believes that the investments in both 807 Broadview Avenue and Smyth Medical Centre will further solidify its market leadership in healthcare real estate in Canada.In a separate transaction, the REIT has entered into a commitment letter for a new ten year $33 million mortgage against its Sunridge Professional Centre asset in Calgary, which will provide net proceeds of approximately $21 million to the REIT after discharge and related transaction costs associated with the existing mortgage. The mortgage loan is expected to fund in the third quarter, at which time the interest rate will be determined and fixed for the term by way of an interest rate swap arrangement, with a current indicative rate of approximately 4.0%.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 62 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.2 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.SOURCE: NorthWest Healthcare Properties Real Estate Investment TrustFor further information: Mike Brady, Senior Vice President, NorthWest Healthcare Properties Real Estate Investment Trust, (416) 601-3222, or www.nwhp.ca.