Invesque Inc. agreed to acquire Mohawk Medical Properties Real Estate Investment Trust, owner of 14 medical office buildings in Canada and the U.S., for US$142 million.
The healthcare real estate company said medical office will be a "pillar for future growth" and plans to expand the initial portfolio through future acquisitions in partnership with Mohawk Realty Advisors Ltd., which will continue to manage the acquired properties, Chief Investment Officer Adlai Chester said in a release.
The Mohawk properties aggregate 545,000 square feet and are in Alberta, Ontario, New York and Florida. Invesque plans to fund the deal through new debt, cash on hand and issuing common shares at US$9.75 per share in exchange for Mohawk Medical REIT's current unit holder equity of about US$37 million. The deal is expected to be immediately accretive to Invesque's adjusted funds from operations.
Among other closing conditions, at least two-thirds of Mohawk Medical REIT shareholders must approve the deal at a special meeting. Holders of about 12% of outstanding units have agreed to vote in favor of the deal.
