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TSX-V: MOB.UN
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 Porftfolio 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 PortfolioThe 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.
Reader Advisory
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