TSX-V: MOB.UN and MOB.WT
TORONTO, Sept. 26, 2011 /CNW/ - GT Canada Medical Properties Real Estate
Investment Trust (the "REIT") announced today that it has entered into an agreement to acquire a
medical office building located in Orillia, Ontario (the "Property").
The purchase is expected to close in the fourth quarter of 2011, subject
to customary closing conditions, including TSXV acceptance and
unitholder approval. It is expected to be immediately accretive and
further advance the REIT's presence in the Ontario medical office
The purchase price of the building will be approximately $6.8 million,
subject to adjustments, which represents a 7.75% cap rate applied to
the year one net operating income. The REIT will also purchase an
additional land parcel for $150,000. The REIT will assume approximately
$3.5 million in mortgage debt on the Property and fund the balance of
the purchase price with cash on hand and a draw on its acquisition
The Orillia Medical Office Building is adjacent to the Soldier's
Memorial Hospital and has served the Orillia and surrounding
communities for over twenty years. The 21,000 square foot building is
occupied by 18 tenants including a pharmacy, lab and x-ray and is fully
"This investment would be the REIT's eighth acquisition in little more
than 18 months," stated Andrew Shapack, the REIT's CEO. "It
demonstrates our commitment to growth and the continued execution of
our business plan to create a high occupancy, physician intensive
portfolio comprised exclusively of medical office buildings."
The vendor is a wholly owned subsidiary of Thornley Holdings Limited,
(the "Vendor") an Ontario corporation that is indirectly controlled by Edward
Thornley, a trustee of the REIT and Darren Thornley, an officer of the
REIT. Accordingly, the acquisition is a "non-arm's length transaction"
and will be subject to majority of the minority unitholder approval. An
information circular detailing the terms of the acquisition is expected
to be mailed to the REIT's unitholders in October 2011, at which time a
copy will be made available at www.sedar.com.
Thornley Holdings Limited, Edward Thornley, and Darren Thornley
collectively own or exercise control or direction over an aggregate of
405,650 voting units of the REIT, representing approximately 2.6% of
the outstanding voting units of the REIT.
In connection with the acquisition, Colliers International will receive
a commission equal to 1.50% (of which the REIT will pay half) of the
purchase price for the Property.
GT Canada Medical Properties REIT
As Canada's only publicly traded issuer focused exclusively on medical
office buildings, GT Canada Medical 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's
objectives are to: (i) provide its unitholders with stable and growing
cash distributions from investments focused on medical office
buildings, on a tax efficient basis; (ii) enhance the value of the
REIT's assets and maximize long-term unit value; and (iii) expand the
asset base of the REIT.
This press release contains forward-looking statements, including those
relating to the accretive aspects of the acquisition and the
opportunities for future growth. Forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "estimates", "intends", "anticipates" or "does
not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the REIT to be materially different from
any future results, performance or achievements.
Neither the TSX Venture Exchange Inc. nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) has approved or disapproved the contents of this press
SOURCE GT Canada Medical Properties Real Estate Investment Trust
For further information:
Andrew Shapack, Chief Executive Officer
GT Canada Medical Properties REIT