Global Medical REIT Inc. launched a public offering of an undisclosed number of its common shares to help fund its $94 million acquisition of a four-property inpatient rehabilitation portfolio from CNL Healthcare Properties Inc. affiliates.
The portfolio encompasses 207,204 square feet, spread across Surprise, Ariz.; Mishawaka, Ind.; Las Vegas; and Oklahoma City.
Upon the completion of the acquisition, the net-lease medical office real estate investment trust expects to assume the portfolio leases from the CNL affiliates.
Global Medical REIT noted that if the tenant at the Oklahoma City property exercises its right to acquire property, the REIT will not proceed with its $28 million purchase of that property.
The REIT expects to grant a 30-day option to the underwriters to acquire an additional 15% of the shares being sold in the offering and plans to also use the net proceeds to repay part of the outstanding debt under its credit facility, among other uses.
Stifel, BMO Capital Markets, Baird and KeyBanc Capital Markets are the book-running managers for the offering.