TORONTO, Sept. 28, 2012 /CNW/ - NorthWest Healthcare Properties Real
Estate Investment Trust (TSX: NWH.UN) (the "REIT") announced today that
it has completed the previously announced acquisition of 84% (45,770
square feet) of the office condominium units and 100% of the
underground parking units at 807 Broadview Avenue, a 54,720 square foot
medical office condominium property in Toronto. The acquisition is
expected to be immediately accretive.
Located in the well-established neighbourhood of Riverdale northeast of
the downtown core, 807 Broadview Avenue is a recently constructed,
design built, medical office condominium building that benefits from a
central location and a modern design. The portion acquired by the REIT
is 100% leased on a long term basis to the Albany Medical Clinic, a
large full service Family Health Group that represents one of Canada's
oldest and largest healthcare clinics. The clinic is anchored by a
large number of both general practitioners and medical specialists who
are complemented by ancillary healthcare services that include
laboratory, diagnostic imaging, dental, psychology and physiotherapy.
The purchase price was $16.44 million, subject to adjustments. NorthWest
assumed, and at closing increased and extended, the vendor's existing
first mortgage to an aggregate principal amount of $10.5 million, with
an interest rate of 4.26% and a 2022 maturity. The equity portion of
the REIT's investment was funded from existing resources. The
investment was the REIT's thirteenth acquisition in Toronto.
In separate transactions, the REIT has closed on approximately 40%
(14,000 square feet) of the office condominium units and 81% of the
parking units in Smyth Medical Centre, a 35,000 square foot medical
office condominium property in Ottawa. Negotiations and due diligence
respecting the acquisition of additional condo units in the building
Located just east of downtown, Smyth Medical Centre (1929 Russell Road)
is a premier building in the Ottawa medical office market due to its
favourable location, diversified healthcare tenant mix and appealing
design. The property is well-leased to primarily healthcare related
users that include pharmacy, laboratory, physiotherapy, dental and
specialist physicians who benefit from the building's close proximity
to the Ottawa Hospital General Campus.
The aggregate purchase price of the units acquired to date was
approximately $3.5 million, subject to adjustments. The condo units
were acquired free and clear of mortgages. The equity portion of the
REIT's investment was funded from existing resources. The acquisition
is expected to be immediately accretive.
The investment was the REIT's first acquisition in the Ottawa area and
its twenty-sixth asset (including 807 Broadview Avenue) in the Province
of Ontario. The REIT believes that the investments in both 807
Broadview Avenue and Smyth Medical Centre further solidifies its market
leadership in healthcare real estate in Ontario, and in Canada.
In a separate transaction, the REIT has completed its previously
announced ten year $33 million mortgage against its Sunridge
Professional Centre asset in Calgary, which provided net proceeds of
approximately $21 million to the REIT after discharge and related
transaction costs associated with the previously existing mortgage. The
fixed interest rate is 3.94%.
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 64 income-producing properties, with a focus on medical office
buildings and healthcare real estate, comprising approximately 4.3
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.