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TORONTO, June 25, 2014 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") today provided an update on the previously announced acquisition of medical office buildings in Germany (the "German MOB Portfolio"), comprised of two components; the first stage being a portfolio of 14 properties (the "Core Portfolio"); and the second component being two properties that can be acquired at the REIT's sole discretion (the "Option Portfolio").
The Core Portfolio
Today the REIT completed the acquisition of thirteen medical office buildings of the Core Portfolio. The acquired portfolio comprises approximately 350,000 square feet with properties located in the cities of Berlin (1), Ingolstadt (1) and Leipzig (11) and has a weighted average occupancy rate of 95% and weighted average lease expiry of approximately 4.4 years.
The acquired portfolio has a diversified tenant base of over 100 tenancies consisting of a range of medical practitioners and related services. The purchase price of approximately C$50M (EUR34M) represents an approximate 8.0% stabilized capitalization rate. The REIT's investment was funded from new mortgage financing from HypoVereinsbank UniCredit for approximately C$31.5M (EUR21.4M) with a weighted average 6.4 year term, fixed interest rate of 2.48% per annum and a 26 year amortization period, and cash on hand including a portion of the net proceeds from the equity offering completed in May 2014.
The REIT expects to close on the remaining fourteenth asset of the Core Portfolio, an established medical complex in the city of Berlin of approximately 58,000 square feet, in July 2014. This Berlin asset will be acquired for a gross purchase price of approximately $16.5M (EUR11.2M) and shall be funded by a new mortgage of approximately $11.5M (EUR7.8M) and existing resources.
The Core Portfolio builds on the REIT's strategy to invest in major markets in Germany. This investment increases the REIT's already strong presence in Berlin, Germany's capital and largest city, and introduces two new markets, Leipzig, a manufacturing hub for BMW and Porsche, and Ingolstadt, a city on the outskirts of Munich and home to the headquarters for Audi.
The Option Portfolio
The REIT has not completed its due diligence and evaluation of the Option Portfolio, consisting of two centrally located managed clinic buildings in the city of Berlin, comprising of approximately 90,000 square feet, and may provide a status update some time during the third quarter of 2014.
Q1-2014 Investor Update
Further to the release of the REIT's first quarter results on May 27, 2014, the REIT has released a Q1-2014 investor update presentation which is available on its website at www.nwireit.com.
About NorthWest International Healthcare Properties Real Estate Investment Trust
The REIT 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 international healthcare properties, 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.
This news release contains "forward-looking statements" within the meaning of applicable securities laws. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the ability of the REIT to pay the distribution on the date specified. The statements in this news release are made as of the date of this release. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. A discussion of the risk factors applicable to the REIT is contained under the heading "Risk Factors" in the REIT's annual information form dated April 23, 2014, audited consolidated financial statements and management's discussion and analysis for the year ended December 31, 2013, and the REIT's short form prospectus dated May 13, 2014, copies of which each may be obtained on the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) has approved or disapproved the contents of this press release.
SOURCE: NorthWest International Healthcare Properties REIT
For further information: Paul Dalla Lana, CEO, (416) 366-8300 x1001; Teresa Neto, CFO, (416) 366-8300 x1002