TORONTO, May 28, 2015 /CNW/ - Mohawk Medical Growth Partners announced today that the Alberta Court of Queen's Bench has issued a final order approving the plan of arrangement under the Business Corporations Act (Alberta) pursuant to which their five limited partnerships were reorganized into a mutual fund trust, called Mohawk Medical Properties REIT (the "REIT").
The plan of arrangement was overwhelmingly approved by 96% of unitholders.
The REIT entered into a credit agreement with Timbercreek Senior Mortgage Investment Corporation for a $135 million, fixed rate, secured debenture. This debenture provides the REIT with a committed tranche for ongoing mortgage financing and a revolving acquisition credit facility. Immediate benefits from the facility include interest rate certainty for both existing properties and future acquisitions, potential for accelerated growth, reduced costs and more efficient acquisition closings. This new facility allowed the REIT to replace its previous mortgage financing on each property, resulting in extended maturity and a lower cost of capital.
The REIT has three medical properties under contract with plans to close in June and July.
About Mohawk Medical Properties REIT
Mohawk is a Toronto based private REIT specializing in healthcare real estate and committed to exceptional returns through reasonable risks. Sean Nakamoto and Andrew Shapack, whose combined track record includes 66 medical office building acquisitions, formed Mohawk in September 2012. The firm engages in acquisition, property management and asset management of Canadian medical office buildings financed through syndication to LP investors.
SOURCE Mohawk Medical Properties REIT