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NorthWest Healthcare Properties Real Estate Investment Trust completes acquisition of Nova Scotia medical office and retail property and acquires right of first offer to purchase Owen Sound medical office building
TORONTO, Dec. 23, 2011, (Canada NewsWire via COMTEX) --NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the "REIT") announced today that it has completed the previously announced acquisition of808-810 East River Road, New Glasgow, Nova Scotia, a 33,800 square foot medical office and retail property.
Comprised of two stories, 808-810 East River Road is a recently constructed stand-alone medical office/retail building that is fully leased to Lawtons Drugs under a long term lease. The ground floor is occupied by a traditional retail pharmacy while the second floor is improved with multiple physician offices. Both uses benefit from the building's immediate adjacency to the currently expanding Aberdeen Regional Hospital. The acquisition also included a neighbouring 0.5 acre parcel of land; a portion of which is currently utilized as tenant parking.
The purchase price is $10.13 million, subject to adjustments. NorthWest assumed the vendor's existing first and second mortgages, having an aggregate principal amount of approximately $7.33 million, a weighted average interest rate of 5.07% and a 2015 maturity. The equity portion of the REIT's investment was funded from existing resources.
The investment is the REIT's seventh asset in the Province of Nova Scotia. The REIT believes that the acquisition of 808-810 East River Road further solidifies its market leadership in healthcare real estate in the Province of Nova Scotia and in Canada.
In a separate transaction, the REIT also announced today that it has been granted a right of first offer to acquire the recently completed Owen Sound Medical Building, a 73,500 square foot medical office building in Owen Sound, Ontario.
Located along Georgian Bay, Owen Sound Medical Building (1415 1(st) Avenue West) is the premiere medical office property for both the immediate and surrounding areas due to its modern design, medical related tenant roster and close proximity to Owen Sound Hospital. The building is currently approximately 70% leased to predominantly healthcare users and is anchored by the Owen Sound Family Health Team, who maintain a large presence on a long term lease. Additional tenants include Rexall Pharmacy, Bayshore Physiotherapy, a diagnostic imaging clinic and complementary retail uses.
In exchange for the right of first offer, the REIT has granted a loan (the "Loan") to Owen Sound Medical Building Inc. (the "Borrower") in the amount of $8,000,000.The Loan will bear interest at a rate of 7.5% per annum and will mature no later than June 21, 2013. The Loan will be secured by the pledge of certain securities of the Borrower and will be guaranteed by certain affiliates of the Borrower.
The Borrower is 50% indirectly owned by NorthWest Value Partners Inc., of which Paul Dalla Lana is the principal shareholder. Mr. Dalla Lana is also a trustee and principal unitholder of the REIT. As a result, in accordance with the REIT's Declaration of Trust, the board of trustees of the REIT appointed a committee of independent trustees to review the terms of the Loan and the right of first offer. This committee has unanimously approved the terms of the Loan and right of first offer. The remaining 50% of the Borrower is indirectly owned by Amicone Holdings Limited.
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 58 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4 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.
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SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust
Mike Brady, Senior Vice President, NorthWest Healthcare Properties Real Investment
Trust, (416) 366-2000 ext. 243, orwww.nwhp.ca.