TSX-V: MOB.UN
TORONTO,
Feb. 18, 2014 /CNW/ - NorthWest
International Healthcare Properties Real Estate Investment Trust
(TSXV: MOB.UN) (the "REIT") announced today that it has
entered into agreements to acquire 16 German medical office
buildings in two separate transactions (the "German MOB
Portfolio") located in the major markets of Berlin, Ingolstadt and Leipzig. The acquisition more than doubles the
size of the REIT's existing German portfolio and solidifies its
position as a leading owner of healthcare real estate in the
country.
At approximately 500,000 square feet, the German
MOB Portfolio is 96.0% occupied with a weighted average lease
expiry of 7.0 years. The purchase price of approximately
C$98M (EUR
65M) represents an approximate 8.0% stabilized cap rate.
The REIT's investment will be funded from
existing resources and new mortgage facilities aggregating
approximately C$64M (EUR 43M). These facilities will have a weighted
average interest rate of approximately 3.0%, a weighted average
term of approximately 10 years and a weighted average amortization
period of approximately 30 years. The acquisitions are expected to
close on or before March 31, 2014,
subject to customary closing conditions including incremental
leasing of 15,156 sqft., and are expected to be immediately
accretive.
Separately, the REIT has sold its leasehold
interest in a building located in Marktredwitz for approximately
C$7M (EUR
5M), representing a 6.25% cap rate. The property was
non-core to the REIT's German portfolio and was sold pursuant to a
pre-emptive right in favour of the local municipality and owner of
the ground lease. The net proceeds from the disposition will be
reinvested as part of the German MOB Portfolio acquisition.
Additional details on the REIT and other recent
developments are available on the REIT's 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.
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 December 12,
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 NOI, AFFO and cap rate, are not measures defined under
International Financial Reporting Standards ("IFRS") and do not
have standardized meanings prescribed by IFRS. NOI, 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&As of the REIT for the three and nine months ended
September 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