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GT Canada Medical Properties REIT Announces the Completion of an Acquisition of a Medical Office Building in Midland, Ontario

^{Published on 2011-09-22 06:58:10 - Market Wire}
 

TORONTO, Sept. 22, 2011 /CNW/ - GT Canada Medical Properties REIT (TSX-V: MOB.UN) (the "REIT") announced today that it has completed the previously announced acquisition of the Huronia Medical Centre, a prominent medical office building anchored by the North Simcoe Family Health Team, in Midland, Ontario.

The property was acquired at an 8.27% capitalization rate applied to the year one net operating income for a total purchase price of $5.21 million. The purchase price was funded in cash and with a new $3.25 million 5-year first mortgage bearing interest at a fixed rate of 4.0% per annum. The purchase is expected to be immediately accretive to the REIT.

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 was acquired from an ownership group consisting of thirteen doctors and healthcare professionals that have all entered into new leases.

"This investment is the REIT's seventh acquisition in 18 months at what we believe to be a very attractive 8.27% cap rate." stated Andrew Shapack, the REIT's CEO, "We are proud of our success in executing our business plan to create a portfolio comprised exclusively of medical office buildings."

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, open-ended 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, including those relating to the accretive aspects of the acquisition and the opportunities for future growth. 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. Forward-looking 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.