NorthWest International Healthcare Properties REIT completes acquisition of German medical office building
TORONTO, April 1, 2013 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today that it has completed the previously announced acquisition of Medicum Muensterfeld - a newly constructed medical office complex located in Fulda, Germany, approximately 100km northeast of Frankfurt, Germany. The acquisition is expected to be immediately accretive.
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$20M is subject to customary closing adjustments and represents an approximate 7.0% in-place cap rate. The REIT's investment was funded from existing resources and new mortgage financing from Deutsche Genossenschafts-Hypothekenbank AG for C$12M with a five year term, a fixed interest rate of 2.37% per annum and a 40 year amortization period.
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) and this acquisition, the REIT now holds interests in a portfolio of 32 income-producing properties, with a focus on internationally-located medical office buildings and healthcare real estate, comprising approximately 2.0 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 future financial performance of Vital Trust . 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 March 18, 2013 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NorthWest International Healthcare Properties REIT