TORONTO, May 2, 2012 /CNW/ - GT Canada Medical Properties REIT (TSX-V: MOB.UN) (the "REIT") announced today that it has completed the previously announced acquisition of a medical office building in Port Hope, Ontario.
The property was acquired at an 8.03% capitalization rate applied to the year one net operating income for a total purchase price of $7.5 million. The purchase price was funded in cash generated from the recent Rights Offering and with a new $4.9 million 2-year first mortgage bearing interest at a floating rate of 2% over the prime rate. The purchase is expected to be immediately accretive to the REIT.
The 25,313 square foot building is occupied by 20 tenants including a pharmacy, lab and x-ray and is currently 100% leased.
This investment is the REIT's twelfth acquisition.
Update on Offer from NorthWest Value Partners Inc. ("NorthWest"):
As a result of the issuance of all 3,880,212 units available under the REIT's recent Rights Offering, NorthWest has confirmed that it will adjust the price at which it is offering to acquire all of the REIT's outstanding units from $2.05 per unit to $1.87 per unit (the "Offer"). The adjusted offer represents a 62.6% premium to the Rights Offering price and offers all GT Canada Unitholders a liquidity event. The Offer is unanimously recommended by the Board of Trustees of the REIT.
A take-over bid circular from NorthWest, which includes a complete description of the Offer and related sale transaction, as well as instructions on how to accept the Offer, together with the REIT's Trustees' circular were mailed to the REIT's unitholders yesterday. Both documents are also available at www.sedar.com.
GT Canada Medical Properties REIT
As Canada's only publicly traded issuer focused exclusively on medical office buildings, GT Canada Medical 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's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on medical office buildings, 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.
Some financial measures used in this press release, such as FFO, are used by the real estate industry to measure and compare the operating performance of real estate companies, but they do not have any standardized meaning prescribed by IFRS. As such, they are unlikely to be comparable to similar measures presented by other real estate companies. These non-IFRS measures are more fully defined and discussed in the REIT's MD&A for the year ended December 31, 2011, which is available on the SEDAR website at www.sedar.com.
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements may include, among other things, statements related to acquisitions; development and capital expenditure activities; future maintenance and leasing expenditures; financing; the availability of financing sources; and income taxes. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the REIT's MD&A, which is available on www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.
For further information:
Andrew I. Shapack
Chief Executive Officer
GT Canada Medical Properties REIT