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NorthWest Healthcare Properties REIT Debuts In U.S. With $765M Portfolio Acquisition

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NorthWest Healthcare Properties REIT has made its debut in the U.S. market with a $765-million portfolio acquisition, expected to close in Q2 2022.

The portfolio is comprised of 27 health care properties including seven hospitals, five micro-hospitals, and 15 medical office buildings totaling 1.2 million square feet. It is 97 percent occupied, with a weighted average lease expiry of 10.7 years and is geographically diversified across 10 states with approximately 60 per cent of net operating income coming from top 20 U.S. metropolitan statistical areas with a focus in the Greater Chicago Area and Sunbelt States.

The U.S. Acquisition

The portfolio includes 78 per cent of single-tenant, 22 per cent multi-tenant properties and 91 per cent of net operating income is either triple or quadruple net.The portfolio’s acquisition will initially be funded from a combination of new corporate and property level financing as well as the REIT’s existing resources.

“The U.S. portfolio is an excellent starting point to launch the REIT’s U.S. strategy because of the defensive nature of the portfolio’s long-term cash flows, attractive contractual rent growth and low management intensity; all of which aligns strongly with the REIT’s core investment strategy,” CEO Paul Dalla Lana said in a media release. “Moreover, this portfolio is a launching pad for accretive expansion with U.S. pricing typically approximately 100 basis points higher on a cap rate basis than the REIT’s other global markets with transaction volume that is unmatched globally.”

The 18 states in the Sunbelt area include Alabama, Arkansas, Arizona, California, Colorado, Florida, Georgia, Kansas, Louisiana, Mississippi, North Carolina, New Mexico, Nevada, Oklahoma, South Carolina, Tennessee, Texas and Utah.

“One of the attractions for the REIT was that it is highly diversified by both market operators and asset types,” said Dalla Lana.

The current plan for the REIT is to bring an investment partner into the portfolio by the end of 2022, although Dalla Lana did not disclose details on this or on the origin of the U.S. portfolio, only that it was an “institutional vendor.”

“Clearly the U.S. is the largest health care and health care real estate market in the world,” Dalla Lana said during a conference call. “So there’s a very significant opportunity to happening and we’ve been working hard over the last year to identify that.”

At the time of writing, there is “nothing major” planned in terms of further transactions on the portfolio.

Other Reports And Looking Ahead

Thanks to the planned completion of a U.K. joint venture, its planned U.S. portfolio and global health care precinct initiatives, all of which are expected to close later in 2022, the REIT’s total assets under management plus capital commitments are expected to increase to approximately $20 billion in the near-term.

Its Q4 2021 revenue was stable year-over-year at $96.4 million. Another expansion of its portfolio came with the $153.3 million acquisition of Cheshire Hospital – a 50 bed acute care hospital occupied by the Spire Hospital Group, the U.K.’s third-largest private hospital operator.

Further expansions included the Tennyson Centre acquired by Vital Trust Healthcare, its New Zealand subsidiary, for approximately $83.9 million and the Epworth Geelong & Elim Hospitals acquired by the REIT’s Australian institutional joint venture for approximately $124.2 million.

On the increased geopolitical risk driven by the Russia-Ukraine conflict, Dalla Lana stated: “Despite the organization’s exposure to European markets, the impact of this point has been limited with credit and equity markets open and accessible and no evidence of disruption in acquisition markets.”

Founded in 2004 and publicly traded since 2010, Toronto-headquartered NorthWest Healthcare Properties REIT has focused on health care real estate investment and management. This translates to 192 properties, approximately 15.3 million square feet and about 2,047 tenants in 7 countries.

Vital Trust Healthcare has assets of over $11 billion, also released its fourth-quarter results last month.

 

Source: Real Estate News Exchange

New Health Care Real Estate-Focused REIT Plans To Deploy $2 Billion Over Next 36-48 Months

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Since its founding in 2004 as an acquirer and developer of student housing properties, Chicago-based CA Ventures LLC has branched out into other property types, including residential, industrial and senior housing.

Over the years, the firm that was originally known as Campus Acquisition – the “CA” in CA Ventures – grew into what it calls a “global, vertically integrated real estate investment management company with more than $13 billion of assets across North America, South America and Europe.”

In early 2020, the investment firm made its move into healthcare real estate (HRE) with the launching of a medical office and life science division.

In recent months, the company announced that the healthcare division had evolved into a new entity, CA Health and Science Trust Inc. (CAHST), a private real estate investment trust (REIT) focused on acquiring and developing value-add and core-plus medical office and life science facilities across the country.

Leading the private REIT are: as president, Russell Brenner, a 24-year commercial real estate (CRE) veteran with a strong background in acquiring and developing medical office buildings (MOBs) and ambulatory surgery centers (ASCs); and, as chief investment officer, Jesse Ostrow, also a CRE veteran with a strong background in real estate private equity, investment banking and consulting.

The two executives were previously with well-known Chicago-based HRE firms, as Mr. Brenner was a partner from 2012 to 2019 with Stage Equity Partners and Mr. Ostrow was the chief investment officer with MedProperties Group, a medical real estate investment, development and operating platform. He was with the firm from 2011 to 2018.

In announcing the launching of CAHST in September, the REIT also announced an initial equity commitment of up to $245 million from three partners; New York-based Davidson Kempner Capital Management LP, New York-based Monarch Alternative Capital LP and CA Ventures.

The new REIT has certainly gotten off to a fast start.

According to Mr. Brenner: “The REIT plans additional follow-on equity raises in the coming 24 months. With leverage, we will seek to deploy roughly $2 billion over the next 36 to 48 months.”

 

Source: HREI

American Healthcare REIT And Griffin-American Healthcare REIT III Merge, Acquisition Creates Eleventh Largest Healthcare REIT Globally

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American Healthcare REIT, formerly known as Griffin-American Healthcare REIT IV, has completed its merger with Griffin-American Healthcare REIT III in a tax-free, stock-for-stock transaction, the company just announced.

The combined company has a gross investment value of approximately $4.2 billion in healthcare real estate assets. In conjunction with the merger, the previously announced acquisition of American Healthcare Investors, the co-sponsor of both REITs, was completed as well. American Healthcare REIT is now the 11th largest healthcare real estate investment trust globally, according to GlobeSt.com.

“We are pleased to have completed this merger and are excited about the future prospects of American Healthcare REIT,” Danny Prosky, CEO and president, said in a press release. “As a large, diverse, and self-managed healthcare REIT, we believe we are strategically positioned to pursue a future listing or IPO on a national stock exchange that would provide liquidity to our existing stockholders and unlock greater growth and value enhancement opportunities as a publicly traded company.”

Among the newly formed REIT’s holdings are 2,100 senior housing and skilled nursing beds among its 312 properties across 36 states and the United Kingdom. The REIT Is active in 36 states and the United Kingdom. The portfolio also includes medical office buildings.

 

Source: McKnights Senior Living