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TORONTO, Sept. 2, 2014 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today that it has completed the previously announced German MOB Core Portfolio Acquisition, by way of acquiring the fourteenth asset, Hohenschonhausen, located in the City of Berlin (the "Berlin Asset" or the "Property").
At approximately 58,000 square feet, the Berlin Asset is 96% occupied with a weighted average lease expiry of 5.6 years. The Property supports over 30 tenancies consisting of a range of medical practitioners and related services, which benefit from their proximity to 6 hospitals and over 3,000 hospital beds.
The Berlin Asset was acquired at a purchase price of $16.5M (EUR11.2M) and funded by new mortgage financing from the REIT's existing German lender, DG Hyp, of $11.5M (EUR7.8M) and existing resources. The mortgage financing bears a fixed interest rate of 1.65% per annum for 3.5 years with a 40 year amortization period. The acquisition is expected to be immediately accretive.
The Option Portfolio
The REIT announced today that it has not exercised its option in respect of two managed clinics located in the city of Berlin (the "Option Portfolio"). As part of its on-going German MOB consolidation strategy the REIT continues to evaluate various acquisition opportunities, including the Option Portfolio.
About NorthWest International Healthcare Properties Real Estate Investment Trust
The REIT 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 international healthcare properties, 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.
SOURCE: NorthWest International Healthcare Properties REIT
For further information: Paul Dalla Lana, CEO, (416) 366-8300 x1001; Teresa Neto, CFO, (416) 366-8300 x1002