TSX-V: MOB.UN

TORONTO, April 30, 2015 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) ("NWI", the "REIT") today announced significant leasing and tenant activity that further strengthens its market leading portfolio of high quality international healthcare real estate assets. In Australia, Vital Healthcare Property Trust ("Vital Trust"), entered into a long-term hospital lease with the country's largest private hospital operator – Ramsay Health Care Limited (ASX: RHC) ("Ramsay").  In addition, the REIT announced an upgrade to the credit profile of its largest tenant, hospital operator Rede D'Or São Luiz ("Rede D'Or"), the largest private hospital operator in Brazil.

Commenting on the announcement, Chairman & CEO of the REIT, Paul Dalla Lana said:

"We are excited to report positive developments in our Australian and Brazilian healthcare real estate portfolios that validate our strategy of investing in healthcare infrastructure assets in major international markets. With 99% of international rents indexed to inflation and 99% occupancy, NWI is uniquely positioned to deliver stable growing cash flows and value accretion by focusing on long-term net leases to investment-grade healthcare operators."

Long-term Lease to Ramsay at Allamanda Private Hospital

Vital Trust recently announced that it has entered into an unconditional agreement with Ramsay for a new 21 year net lease of 100% of Allamanda Private Hospital in Southport, Gold Coast, Australia commencing in November 2016 upon the expiration of the current tenant's lease term.  The net lease carries an initial annual rent of A$2.4M (C$2.3M) and includes annual CPI increases and periodic reviews to market. With 212 hospitals and day surgery facilities across Australia, France, the United Kingdom, Indonesia and Malaysia, Ramsay is one of the top five private hospital operators in the world with an enterprise value in excess of A$14.0BN (C$13.5BN).

Commenting on Vital Trust's long-term lease with Ramsay, David Carr  – President of NWI subsidiary, Vital Healthcare Management Limited ("VHML") & CEO of Vital Trust, said:

"The lease to Ramsay, a leading global hospital operator is a significant milestone for Vital. It improves an already industry leading average lease term of over 15 years and reduces Vital's average annual lease expiry profile to only 2.2% of portfolio rent per annum.  To secure a long-term lease with one of the world's largest private hospital operators is a fantastic outcome. "

The REIT has an approximate 24% interest in Vital Trust and also acts as its asset manager through its subsidiary VHML.

Upgrade to the Liquidity and Credit Profile of Rede D'Or

The tenant at four of the REIT's hospitals, Rede D'Or – the largest private hospital operator in Brazil, announced an equity investment of R$1.8BN (C$720.0M) from the Carlyle Group (NASDAQ:CG). The equity investment values Rede D'Or at R$19.0BN (C$7.6BN) and served as the catalyst for its credit rating upgrade to 'AA-' on a National scale and to 'BB' on a Global scale.  

Rede D'Or operates more than 4,500 beds in 27 owned and two managed hospitals, in addition to 30 oncology clinics, with a presence in Rio de Janeiro, Sao Paulo, Pernambuco and Brasilia and intends to significantly strengthen and expand its platform, with plans to invest approximately R$1.5BN (C$600.0M) in existing and new facilities in 2015.  NWI is Rede D'Or's largest landlord and a key partner in two of these planned expansions in regional hospitals in Sao Paulo and Brasilia.

For a virtual tour of Rede D'Or's flagship 200 bed hospital in Rio De Janiero owned by the REIT, please visit www.nwireit.com.   

About NorthWest International Healthcare Properties Real Estate Investment Trust

NWI is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. Including its investment in NWH and Vital Healthcare Property Trust, NWI holds interests in a portfolio of 122 income-producing properties, representing an internationally diversified portfolio of medical office buildings and healthcare real estate, comprising approximately 7.8 million square feet of gross leasable area located in Australia / New Zealand, Brazil, Canada and Germany.

Disclaimer

Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

NWI has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs.

Although the forward-looking statements contained in this news release are based upon assumptions that management of NWI believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond NWI's control, including, among other things, the risks identified each of NWI's materials filed under its profile at www.sedar.com from time to time. The forward-looking statements made in this news release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, NWI undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE NorthWest International Healthcare Properties REIT

Copyright 2015 Canada NewsWire

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