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GT Canada Medical Properties REIT announces acquisition of medical office building in Midland, Ontario

^{Published on 2011-08-15 07:01:24 - Market Wire}
 

TORONTO, Aug. 15, 2011 /CNW/ - GT Canada Medical Properties REIT (TSX-V: MOB.UN) (the "REIT") announced today that it has entered into an agreement to acquire the Huronia Medical Centre, a prominent medical office building anchored by the North Simcoe Family Health Team, in Midland, Ontario, which has a seasonal population of over 100,000.

The purchase is expected to close in the third quarter of 2011, subject to customary closing conditions, and is expected to be immediately accretive and further advance the REIT's presence in the Ontario medical office building market.

The purchase price will be approximately $5.21 million, subject to adjustments, which represents an 8.27% capitalization rate applied to the year one net operating income based on the in place annual rent. The property will be acquired from an ownership group consisting of thirteen doctors and healthcare professionals that have all agreed to new leases and continued commitments to the building.

The Huronia Medical Centre is adjacent to the Georgian Bay General Hospital and has served the Midland and surrounding communities for over twenty years. The 23,026 square foot building is occupied by 22 tenants including a pharmacy, lab and x-ray and is currently 100% occupied. The property will be acquired free and clear of any existing mortgages. The equity portion of the REIT's investment will be funded from existing resources.

"This investment would be the REIT's seventh acquisition in less than 18 months, and at an 8.27% cap rate," stated Andrew Shapack, the REIT's CEO, "it demonstrates the REIT's commitment to growth through acquisitions, with a disciplined focus on continuing to build a portfolio comprised exclusively of medical office buildings that are physician intensive with high occupancy rates".

GT Canada Medical Properties REIT

As Canada's only publicly traded issuer focused exclusively on medical office buildings, GT Canada Medical Properties Real Estate Investment Trust is an unincorporated, openended real estate investment trust established under the laws of the Province of Ontario. The REIT's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on medical office buildings, on a tax efficient basis; (ii) enhance the value of the REIT's assets and maximize long-term unit value; and (iii) expand the asset base of the REIT.

This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forwardlooking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) has approved or disapproved the contents of this press release.