TORONTO , May 6, 2013 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (NWH-UN.TO) (the "REIT") announced today that it has entered into an agreement to acquire 741, 755 and 765 Portage Avenue ("Portage Portfolio"), a 43,750 square foot three building office portfolio in Winnipeg . The purchase is expected to close in the second quarter of 2013, subject to customary closing conditions, and is expected to be immediately accretive.
Located just west of "Portage and Main" at the periphery of the downtown core, the Portage Portfolio is comprised of three buildings and features a recently developed, purpose-built government healthcare building located at 755 Portage Avenue. The Portage Portfolio is fully-leased to three tenants, of which the Winnipeg Regional Health Authority ("WRHA") is the most significant, occupying 80% of the rentable area under a long-term lease (2029). The WRHA is funded by the provincial government and is charged with the organization and provision of healthcare services for Winnipeg and surrounding municipalities, operating and funding over 200 healthcare facilities and programs, with an annual budget of over $2 billion . The portfolio is home to a WRHA Community Health Office, which provides healthcare related services focusing on childhood development, mental health, public health and child and family services.
The purchase price is $13.2 million , subject to adjustments. NorthWest will assume the vendor's existing first mortgage, as well as securing a new vendor take-back second mortgage, for an aggregate principal amount of approximately $9.6 million , a weighted average interest rate of approximately 4.56% and an average term-to-maturity of 14 years. The equity portion of the REIT's investment will be funded from existing resources.
The investment will be the REIT's first asset in the Province of Manitoba. The REIT believes that the acquisition of the Portage Portfolio will provide an entry into the large and growing healthcare market of Winnipeg while further solidifying its market leadership in healthcare real estate in Canada .
In separate transactions, and as part of the REIT's strategy to extend mortgage terms and lower interest rates at this time of favourable mortgage lending conditions, the REIT has closed or has entered into or is finalizing commitments for 10 mortgage financings or refinancings for an aggregate loan amount of over $100 million , having an average term of approximately 5 years, a weighted average interest rate of approximately 3.65% (reflecting in certain instances a blended and extended rate on early refinancings) and providing approximately $16 million of net loan proceeds after existing mortgage payouts.
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 76 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.6 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
Mike Brady, Senior Vice President, NorthWest Healthcare Properties Real Estate Investment Trust, (416) 601-3222, or www.nwhp.ca.