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TORONTO, April 20, 2016 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) ("NorthWest" or the "REIT") is pleased to announce the closing of its previously-announced public offering of 6,550,000 trust units ("Units") of the REIT, on a bought deal basis, at a price of $9.20 per Unit (the "Offering Price") for aggregate gross proceeds of approximately $60.3 million (the "Offering"). The Offering was conducted through a syndicate of underwriters co-led by RBC Capital Markets and BMO Capital Markets (the "Underwriters").
The REIT has granted the Underwriters an over-allotment option exercisable at any time up to the date that is 30 days from the date of closing of the Offering to offer for sale up to an additional 982,500 Units on the same terms and conditions.
NorthWest Value Partners Inc. ("NWVP"), NorthWest's largest unitholder, also purchased, by way of private placement, an aggregate of approximately $10 million of Units at the Offering Price (the "Private Placement"). Following the Offering and Private Placement, NWVP holds an approximate 32% interest in NorthWest. NWVP is wholly-owned by Paul Dalla Lana, CEO of the REIT.
The net proceeds from the Offering and the Private Placement are being used to fund the equity component of the previously-announced acquisition of a two building medical office complex in Berlin, Germany (the "Berlin Acquisition"), to repay existing indebtedness (including amounts outstanding on the REIT's revolving credit facility) and for general trust purposes.
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.
Forward Looking Information
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws, including but not limited to the expected use of proceeds of the Offering and the Concurrent Private Placement. When used in this new release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward looking statements. Those statements reflect the REIT's current views with respect to future events or conditions. By their nature, forward looking statements reflect management's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the REIT's joint management information circular dated April 7, 2015, annual information form dated March 10, 2016 and (final) short form prospectus dated April 13, 2016 and the REIT's other public filings, copies of which each may be obtained on the SEDAR website at www.sedar.com. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The REIT does not intend to nor assume any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. Accordingly, this news release does not constitute an offer for sale of securities in the United States.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
For further information: Paul Dalla Lana, CEO, NorthWest Healthcare Properties REIT, (416) 366-8300 x1001