NorthWest Healthcare Properties REIT updated on several deals, including its C$314 million acquisition of 10 properties and a C$476 million lending facility that it secured.
For the property acquisitions, the company said it agreed to buy three medical office properties and two post-acute care hospitals in Germany for C$127 million. The transactions will be financed with property level financing and net proceeds from capital recycling initiatives. Two of the property deals closed in the fourth quarter of 2017, while the remaining are expected to wrap up in the 2018 first-quarter.
In Australia, the real estate investment trust's NorthWest Australia subsidiary updated on its agreement to buy the remaining 50% stake it does not own in Epworth Freemasons Hospital for C$52.2 million and committed C$85.3 million toward the expansion of the hospital. The transactions will be fully funded with property level financing.
In New Zealand, Vital Healthcare Property Trust, a partially owned subsidiary of the REIT, completed its C$110.6 million acquisition of three hospitals, wherein up to an additional C$96.6 million has been allocated for a four-year expansion of the brownfield areas at the assets during the fourth quarter of 2017. Vital Healthcare, in the same period, also acquired Eden Rehabilitation Hospital for C$23.4 million.
The REIT also reported that in the fourth quarter of 2017, it sold two medical office buildings in Canada and Australia for C$32.3 million.
In the first quarter of 2018, it progressed on its plan to sell the Dundas Edward Centre in downtown Toronto, which it expects to net about C$100 million from and complete in the first quarter.
Meanwhile, the REIT said a new C$476 million lending facility was completed for the refinancing of its Australian subsidiary's portfolio debt. Proceeds will also be used to repay higher-cost corporate debt and fund ongoing acquisition and development activities. It added that NorthWest Australia completed a new five-year C$481 million syndicated term-loan facility led by an Australian bank and two Canadian banks. Of the total size of the facility that has an all-in initial rate of about 4.65%, an initial C$247 million was drawn to repay existing debt.
The company added in a separate release that Colin Loudon was named lead independent trustee, while David Naylor and Brian Petersen have been respectively appointed as chair and member of the compensation, governance and nominating committee. The appointments were made due to the Jan. 22 passing of lead independent trustee and committee chair Martin Barkin.
The REIT noted that a search will commence for a new independent trustee.
