NorthWest Healthcare Properties Real Estate Investment Trust
TSX : NWH.UN

NorthWest Healthcare Properties Real Estate Investment Trust

March 31, 2016 20:49 ET

CORRECTION FROM SOURCE: NorthWest Healthcare Properties REIT Announces Bought Deal and Concurrent Private Placement for Aggregate Gross Proceeds of $65 Million

TORONTO, ONTARIO--(Marketwired - March 31, 2016) -

Not for distribution to U.S. news wire services or dissemination in the United States.

This release corrects and replaces the news release issued on March 31 at 4:52 PM ET. The number of trust units and amount of gross proceeds have been corrected, and clarifying information regarding the concurrent private placement has been added to the release. The complete and corrected release follows.

NorthWest Healthcare Properties Real Estate Investment Trust ("NorthWest" or the "REIT") (TSX:NWH.UN) announced today a public offering, on a "bought deal" basis, of 6,000,000 trust units (the "Units") at a price of $9.20 per Unit representing gross proceeds of $55.2 million. The offering is being made through a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets.

The REIT has also granted the underwriters the option to purchase up to an additional 900,000 Units to cover over-allotments, if any, exercisable in whole or in part anytime up to 30 days following closing of the offering.

Concurrently, NorthWest Value Partners Inc., NorthWest's largest unitholder, has agreed to purchase, on a private placement basis, an aggregate of approximately $10 million in units at the offering price. NorthWest Value Partners Inc. currently holds an approximate 34% interest in NorthWest and is wholly-owned by Paul Dalla Lana, CEO of the REIT. The closing of the public offering is conditional upon the closing of the concurrent private placement.

NorthWest intends to use the net proceeds of the offering and concurrent private placement to fund the equity component of the previously announced acquisition of a two building medical office complex in Berlin, Germany, to repay existing indebtedness (including amounts outstanding on the REIT's revolving credit facility) and for general trust purposes, thus providing NorthWest with additional financial flexibility to pursue its various growth initiatives.

The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close on or about April 20, 2016.

The Units will be offered by way of a short form prospectus in all of the provinces and territories of Canada and may also be offered by way of private placement in the United States.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About NorthWest Healthcare Properties Real Estate Investment Trust

NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 120 income-producing properties and 7.7 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Germany, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 180 professionals across 9 offices in 5 countries to serve as a long term real estate partner to leading healthcare operators.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements about the offering and proposed use of proceeds thereof. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the risk that the offering will not be completed on the terms proposed, or at all. The statements in this news release are made as of the date of this release. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. A discussion of the risk factors applicable to the REIT is contained under the heading "Risk Factors" in the REIT's annual information form dated March 14, 2016 and management information circular dated April 7, 2015, copies of which each may be obtained on the SEDAR website at www.sedar.com.

Contact Information

  • NorthWest Healthcare Properties Real Estate Investment Trust
    Paul Dalla Lana
    CEO
    (416) 366-8300 x 1001