NorthWest Healthcare Properties REIT Executes on $145 Million of Brazil Hospital Acquisitions

TORONTO, July 21, 2016 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT" or "NorthWest") (TSX: NWH.UN) announced today that it has completed the previously disclosed acquisition of Hospital Ifor for $25.7 million (R$65.9 million) (the "Acquisition") and waived due diligence conditions on the previously disclosed acquisition of Hospital Santa Helena for $117.0 million (R$300.0 million) (the "Pending Acquisition", and together with the Acquisition,  the "Transactions"), subject to customary closing adjustments. The Transactions bring the REIT's Brazil portfolio to seven hospitals centered around the major gateway cities of Sao Paulo, Brasilia and Rio De Janeiro and mark the continuing consolidation by the REIT of private hospitals in the region.

Located in metropolitan Sao Paulo, in a densely populated commercial hub, Hospital Ifor is a specialist orthopedic hospital with 60 beds and 6 surgical suites. Concurrent with the Acquisition, Rede D'Or has entered into a new, fully net 25-year lease (with three 25-year renewal options) with an initial annual rent of $2.8 million (R$7.1 million), representing a 10.8% initial cap rate, plus annual inflation adjustments. The Acquisition was funded through existing resources from the REIT's recent long term financing of its Hospital e Maternidade Brasil asset and is expected to be immediately accretive. 

Separately, Hospital Santa Helena is a general hospital located in the north hospital sector of Brasilia, the federal capital of Brazil and comprises 234 beds and 16 surgical units. The Pending Acquisition is expected to be completed during the third quarter of 2016. Concurrent with closing, Rede D'Or will enter into a new,  fully net 25-year lease (with three 25-year renewal options) at an initial annual rent of $11.1 million (R$28.5 million), representing a 9.5% initial cap rate, plus annual inflation adjustments and subject to customary closing adjustments. The Pending Acquisition is expected to be funded in part through the net proceeds from the REIT's recent $122.8 million bought deal financing and concurrent $5.0 million private placement, as well as through the placement of new long term financing secured by the REIT's existing Caxias Hospital for an estimated amount of C$51.9M (R$133.0M) with a term of 10 years and an interest rate estimated to be approximately 8.2% based on the current underlying NTN-B bond rates (NTN-B + 200 bps) and is expected to be immediately accretive.    

Commenting on the Transactions, NorthWest Chairman and CEO Paul Dalla Lana said:

"The Transactions further strengthen the REIT's relationship with Rede D'Or – Brazil's largest private hospital operator in Brazil with a Fitch credit rating of 'AA' on a National scale and to 'BB+' on a Global scale.   Rede D'Or operates approximately 4,500 beds across 29 owned and two managed hospitals, in addition to 35 oncology clinics, with a presence in Rio de Janeiro, Sao Paulo, Pernambuco and Brasilia. The REIT is Rede D'Or's largest landlord and a key partner in its growth initiatives."

Additional details on the Transactions are available in a presentation on the REIT's website at www.nwhreit.com  

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 139 income-producing properties and 9.3 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 Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including, without limitation, statements regarding the completion of the Transactions, the financing of the Transactions, the benefits of the Transactions (including the extent to which they will be accretive), initial cap rates and the REIT's relationship with Rede D'Or. The forward-looking statements in this news release are based on certain assumptions, including that all conditions to completion of the Pending Transaction will be satisfied or waived, the REIT will complete the Pending Transaction and related financings on the terms anticipated, revenue and costs associated with the assets acquired in connection with the Transactions will meet the REIT's expectations, significant additional costs will not have to be incurred by the REIT, exchange rates remain consistent and the other assumptions referenced under the heading "Forward-Looking Information Advisory" in the REIT's most recently filed management's discussion and analysis. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the risk that the Pending Transaction and related financings will not be completed on the terms proposed and the factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE NorthWest Healthcare Properties Real Estate Investment Trust

For further information: Paul Dalla Lana, CEO at (416) 366-8300 x 1001


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