TSX-V: MOB.UN
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
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TORONTO, Dec. 23, 2013 /CNW/ - NorthWest International
Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN)
(the "REIT") announced today that it has completed the
previously announced acquisition of a portfolio of three private
hospitals from Rede D'Or Sao Luiz S.A. ("Rede D'Or") for
approximately $205 million
(R$ 447 million) (the "Rede D'Or
Hospital Portfolio Acquisition"). Concurrent with the closing,
Rede D'Or entered into a fully net 25 year leaseback for each of
the three properties with an initial annual rent of $19.5 million in the aggregate, representing an
average 9.5% initial cap rate, plus annual inflation adjustments.
The acquisition is expected to be significantly accretive and
serves as the basis for the REIT's recently announced increase in
distributions to $0.22/unit,
effective January 1, 2014.
The Rede D'Or Hospital Portfolio Acquisition
more than doubles the size of the REIT's Brazilian portfolio and
increases its international portfolio of healthcare real estate to
approximately $758 million - a
310% increase since inception in October 2012. With interests in 113 hospitals,
clinics and medical office buildings in major markets across
Australasia, Brazil, Canada and Germany, the REIT's portfolio has a weighted
average occupancy of 96.3% (99.2% international) and a weighted
average lease expiry of 12.4 years (17.6 international) providing
its unitholders with a unique combination of stable and growing
distributions.
As part of its acquisition of the Rede D'Or
Hospital Portfolio Acquisition, the REIT entered into a new
approximately $124 million
(R$270 million) term loan denominated
in Brazilian Real maturing in December
2014 with BTG Pactual as well as a new $24 million credit facility maturing in
January 2017 denominated in Canadian
Dollars with Firm Capital Corporation. In connection with the
$24 million credit facility, the REIT
granted the lender 3,000,000 non-transferable warrants, each of
which entitle the holder to acquire a unit of the REIT at a price
of $2.15 per unit until January 2, 2017. The units underlying the
warrants may not be traded until April 19,
2014.
Additional details on the REIT, the Rede D'Or
Hospital Portfolio Acquisition and other recent developments are
available on the REIT's website at www.nwireit.com.
Reader Advisory
This news release contains "forward-looking
statements" within the meaning of applicable securities laws,
including statements regarding: the initial cap rate of the
acquisition; the impact of the acquisition on the REIT's AFFO and
AFFO per Unit; the intentions of the REIT with respect to the
financing of the acquisition; and the expected pricing of such
financing. 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 risk that: the acquisition does not close as expected;
financing for the acquisition is not available on the terms
contemplated or at all; and foreign exchange rates remain constant.
A discussion of other risk factors applicable to the REIT is
contained under the heading "Risk Factors" in the short-form
prospectus of the REIT dated August 23,
2013, the REIT's annual information form dated March 11, 2013 and audited consolidated financial
statements and management's discussion and analysis
("MD&A") for the year ended December 31, 2012, copies of which may be
obtained on the SEDAR website at www.sedar.com. The
statements in this news release are made as of the date of this
release. The REIT does not intend to, and the REIT disclaims any
obligation to, update any forward looking information, whether
written or oral, or whether as a result of new information, future
events or otherwise, except as required by law. 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.
Certain terms used in this press release,
such as AFFO and cap rate, are not measures defined under
International Financial Reporting Standards ("IFRS") and do not
have standardized meanings prescribed by IFRS. AFFO and cap rate,
as presented, may not be comparable to similar measures presented
by other issuers. AFFO should not be construed as an alternative to
net earnings or cash flow from operating activities as determined
by IFRS The REIT believes that AFFO is useful in the assessment of
its operating performance and that this measure is also useful for
valuation purposes and is a relevant and meaningful measure of its
ability to earn and distribute cash to unitholders. Examples of
reconciliations of AFFO to the most directly comparable measure
calculated in accordance with IFRS are provided in the MD&A of
the REIT for the three months ended June 30,
2013 and year ending December 31,
2012.
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 Real Estate
Investment Trust