TORONTO, April 18, 2016 /CNW/ – NorthWest Healthcare Properties Real Estate Investment Trust (“NorthWest” or the “REIT”) (TSX:NWH.UN) announced today that it has completed the previously disclosed acquisition of the Mehrower Allee Complex â a purpose-built two-building complex in a densely populated section of the borough of Marzahn-Hellersdorf, approximately 15 kilometers from Berlin’s iconic Brandenburg Gate in the city center and within close proximity to the REIT’s most recent additions to its German portfolio. The acquisition of the Mehrower Allee Complex brings the REIT’s portfolio to seven assets in Berlin and 21 in Germany and represents the continuing consolidation by the REIT of medical office space in the region.
At approximately 82,000 square feet, the Mehrower Allee Complex is 97.3% occupied with a weighted average lease expiry of 4.0 years. The property has a diversified tenant base comprising of 52 tenancies representing a wide range of healthcare disciplines including emergency surgery, radiology/nuclear medicine, laboratory and pharmacy, in addition to general practitioner physicians and dental professionals. With a high concentration of medical and related services, the property serves as the community’s primary health care destination.
The purchase price of approximately C$19.6M (EUR13.5M) represents an approximate 6.8% in-place cap rate. The REIT’s investment was funded from existing resources and new mortgage financing from HypoVereinsbank for C$16.2M (EUR11.2M) with an eight year term, a fixed interest rate of 1.70% per annum and a 28 year amortization period. The acquisition is expected to be immediately accretive.
About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 122 income-producing properties and 7.8 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Germany, Australia and New Zealand. The REIT’s portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 180 professionals across 9 offices in 5 countries to serve as a long term real estate partner to leading healthcare operators.
This news release contains “forward-looking statements” within the meaning of applicable securities laws, including statements about the offering and proposed use of proceeds thereof. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the risk that the offering will not be completed on the terms proposed, or at all. The statements in this news release are made as of the date of this release. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. A discussion of the risk factors applicable to the REIT is contained under the heading “Risk Factors” in the REIT’s annual information form dated March 14, 2016 and management information circular dated April 7, 2015, copies of which each may be obtained on the SEDAR website at www.sedar.com.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust