NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) agreed to acquire Four Medical Office Buildings in the Netherlands for approximately CAD 170 million.
June 10, 2021
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NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) agreed to acquire Four Medical Office Buildings in the Netherlands for approximately CAD 170 million on June 10, 2021. The purchase price for the Netherlands MOBs is approximately CAD 172 million based on a capitalization rate of approximately 5.1%. NorthWest has secured debt financing based on 58% loan-to-value with an attractive interest rate of approximately 2.4% to partially fund the purchase price. In a related transaction, NorthWest also announced a public offering, on a "bought deal" basis, of 13,900,000 trust units at a price of CAD 12.60 per unit representing gross proceeds of approximately CAD 175,140,000. Concurrently with the public offering, NorthWest has also entered into an agreement to sell 1,985,000 trust units to NorthWest Value Partners Inc. on a nonbrokered private placement basis at the offering price for gross proceeds of approximately CAD 25 million. NorthWest intends to use the net proceeds of the offerings to: (i) fund its equity requirement for the purchase of a campus of four medical office buildings in the Netherlands; and (ii) provide financial flexibility in respect of its previously announced proposed transaction to acquire Australian Unity Healthcare Property Trust. The remaining proceeds, if any, will be used to fund future acquisitions, to repay amounts outstanding on its credit facilities and for general trust purposes. The acquisition of the Netherlands MOBs is expected to close in June 2021.
Northwest Healthcare Properties Real Estate Investment Trust is a Canada-based open-ended real estate investment trust. The Company operates in the healthcare real estate industry segment. Its businesses include funds management, asset management, and development. It focuses on the cure segment of healthcare real estate, such as hospitals, medical office buildings, and clinics. Its asset class segmentation includes hospitals and healthcare facilities; medical office buildings, and life sciences, research, and education. It provides a portfolio of international healthcare real estate infrastructure comprised of interests in a diversified portfolio of approximately 231 income-producing properties and 18.5 million square feet of gross leasable area located throughout markets in Canada, the United States, Brazil, Europe, Australia, and New Zealand. Its portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies.
NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) agreed to acquire Four Medical Office Buildings in the Netherlands for approximately CAD 170 million.