TORONTO, Sept. 28, 2012 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the "REIT") announced today that it has completed the previously announced acquisition of 84% (45,770 square feet) of the office condominium units and 100% of the underground parking units at 807 Broadview Avenue, a 54,720 square foot medical office condominium property in Toronto. The acquisition is expected to be immediately accretive.
Located in the well-established neighbourhood of Riverdale northeast of the downtown core, 807 Broadview Avenue is a recently constructed, design built, medical office condominium building that benefits from a central location and a modern design. The portion acquired by the REIT is 100% leased on a long term basis to the Albany Medical Clinic, a large full service Family Health Group that represents one of Canada's oldest and largest healthcare clinics. The clinic is anchored by a large number of both general practitioners and medical specialists who are complemented by ancillary healthcare services that include laboratory, diagnostic imaging, dental, psychology and physiotherapy.
The purchase price was $16.44 million, subject to adjustments. NorthWest assumed, and at closing increased and extended, the vendor's existing first mortgage to an aggregate principal amount of $10.5 million, with an interest rate of 4.26% and a 2022 maturity. The equity portion of the REIT's investment was funded from existing resources. The investment was the REIT's thirteenth acquisition in Toronto.
In separate transactions, the REIT has closed on approximately 40% (14,000 square feet) of the office condominium units and 81% of the parking units in Smyth Medical Centre, a 35,000 square foot medical office condominium property in Ottawa. Negotiations and due diligence respecting the acquisition of additional condo units in the building continue.
Located just east of downtown, Smyth Medical Centre (1929 Russell Road) is a premier building in the Ottawa medical office market due to its favourable location, diversified healthcare tenant mix and appealing design. The property is well-leased to primarily healthcare related users that include pharmacy, laboratory, physiotherapy, dental and specialist physicians who benefit from the building's close proximity to the Ottawa Hospital General Campus.
The aggregate purchase price of the units acquired to date was approximately $3.5 million, subject to adjustments. The condo units were acquired free and clear of mortgages. The equity portion of the REIT's investment was funded from existing resources. The acquisition is expected to be immediately accretive.
The investment was the REIT's first acquisition in the Ottawa area and its twenty-sixth asset (including 807 Broadview Avenue) in the Province of Ontario. The REIT believes that the investments in both 807 Broadview Avenue and Smyth Medical Centre further solidifies its market leadership in healthcare real estate in Ontario, and in Canada.
In a separate transaction, the REIT has completed its previously announced ten year $33 million mortgage against its Sunridge Professional Centre asset in Calgary, which provided net proceeds of approximately $21 million to the REIT after discharge and related transaction costs associated with the previously existing mortgage. The fixed interest rate is 3.94%.
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 64 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.3 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.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust