NorthWest International Healthcare Properties REIT announces acquisition of German medical office building
TORONTO, March 5, 2013 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today that it has entered into an agreement to acquire Medicum Muensterfeld - a newly constructed medical office complex located in Fulda, Germany, approximately 100km northeast of Frankfurt, Germany. The acquisition represents the REIT's sixth asset in Germany and reinforces its commitment to becoming the largest owner of healthcare real estate in the country.
At approximately 120,000 square feet, Medicum Muensterfeld is 99% occupied with a weighted average lease expiry of 7.1 years. The property has a diversified tenant base focused on healthcare related users and orthapedic services which benefit from the building's close proximity to the Klinikum Fulda - one of Fulda's leading hospitals.
The purchase price of approximately C$20.3M, subject to customary closing adjustments represents an approximate 7.0% in-place cap rate. The REIT's investment will be funded from existing resources and new mortgage financing from Deutsche Genossenschafts-Hypothekenbank for C$12.2M with a five year term, a fixed interest rate of approximately 2.50% per annum and a 40 year amortization period. The acquisition is expected to close during the first quarter of 2013, subject to customary closing conditions and is expected to be immediately accretive.
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. Including its investment in Vital Healthcare Property Trust (NZX: VHP), the REIT currently holds interests in a portfolio of 31 income-producing properties, with a focus on internationally-located medical office buildings and healthcare real estate, comprising approximately 1.9 million square feet of gross leasable area located in Australia / New Zealand, Brazil and Germany.
Forward Looking Information
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws. When used in this new release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward looking statements. Those statements reflect the REIT's current views with respect to future events or conditions, including the closing of the acquisition (either on the terms proposed or at all) and the accretive nature of the acquisition. By their nature, forward looking statements reflect management's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the short-form prospectus of the REIT dated December 7, 2012 and in the REIT's other public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The REIT does not intend to nor assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
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SOURCE NorthWest International Healthcare Properties REIT