TORONTO, May 6, 2013 /CNW/ - NorthWest Healthcare Properties Real Estate
Investment Trust (TSX: NWH.UN) (the "REIT") announced today that it has
entered into an agreement to acquire 741, 755 and 765 Portage Avenue
("Portage Portfolio"), a 43,750 square foot three building office
portfolio in Winnipeg. The purchase is expected to close in the second
quarter of 2013, subject to customary closing conditions, and is
expected to be immediately accretive.
Located just west of "Portage and Main" at the periphery of the downtown
core, the Portage Portfolio is comprised of three buildings and
features a recently developed, purpose-built government healthcare
building located at 755 Portage Avenue. The Portage Portfolio is
fully-leased to three tenants, of which the Winnipeg Regional Health
Authority ("WRHA") is the most significant, occupying 80% of the
rentable area under a long-term lease (2029). The WRHA is funded by the
provincial government and is charged with the organization and
provision of healthcare services for Winnipeg and surrounding
municipalities, operating and funding over 200 healthcare facilities
and programs, with an annual budget of over $2 billion. The portfolio
is home to a WRHA Community Health Office, which provides healthcare
related services focusing on childhood development, mental health,
public health and child and family services.
The purchase price is $13.2 million, subject to adjustments. NorthWest
will assume the vendor's existing first mortgage, as well as securing a
new vendor take-back second mortgage, for an aggregate principal amount
of approximately $9.6 million, a weighted average interest rate of
approximately 4.56% and an average term-to-maturity of 14 years. The
equity portion of the REIT's investment will be funded from existing
The investment will be the REIT's first asset in the Province of
Manitoba. The REIT believes that the acquisition of the Portage
Portfolio will provide an entry into the large and growing healthcare
market of Winnipeg while further solidifying its market leadership in
healthcare real estate in Canada.
In separate transactions, and as part of the REIT's strategy to extend
mortgage terms and lower interest rates at this time of favourable
mortgage lending conditions, the REIT has closed or has entered into or
is finalizing commitments for 10 mortgage financings or refinancings
for an aggregate loan amount of over $100 million, having an average
term of approximately 5 years, a weighted average interest rate of
approximately 3.65% (reflecting in certain instances a blended and
extended rate on early refinancings) and providing approximately $16
million of net loan proceeds after existing mortgage payouts.
About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare 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 holds a portfolio
of 76 income-producing properties, with a focus on medical office
buildings and healthcare real estate, comprising approximately 4.6
million square feet of gross leasable area located in British Columbia,
Alberta, Ontario, Québec, Nova Scotia and New Brunswick.
This press release contains forward-looking statements which reflect the
REIT's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those projected herein. The REIT
disclaims any obligation to update these forward-looking statements.
SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust
For further information:
Mike Brady, Senior Vice President, NorthWest Healthcare Properties Real Estate Investment Trust, (416) 601-3222, or www.nwhp.ca.