Mr. Paul Dalla Lana reports

NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES $70 MILLION CONVERTIBLE DEBENTURE BOUGHT DEAL AND CONTINUED INTERNATIONAL GROWTH

Northwest Healthcare Properties Real Estate Investment Trust has arranged a public offering, on a bought deal basis, of $70-million principal amount of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 5.25 per cent per annum, payable semi-annually on the last day of June and December commencing on June 30, 2017. The debentures will mature on Dec. 31, 2021.

The offering is being made through a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets.

The REIT has also granted the underwriters the option to purchase up to $10.5-million principal amount of additional debentures at a price of $1,000 per debenture to cover overallotments, exercisable in whole or in part any time up to 30 days following closing of the offering.

The debentures will be convertible at the holder's option into units of the REIT at a conversion price of $12.80 per unit. The debentures will not be redeemable prior to Dec. 31, 2019. From Jan. 1, 2020, to Dec. 31, 2020, the debentures may be redeemed in whole or in part from time to time at the REIT's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume-weighted average trading price of the units on the Toronto Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 125 per cent of the conversion price. From Jan. 1, 2021, onward, the debentures will be redeemable at the option of the REIT, in whole or in part, at a redemption price equal to par plus accrued and unpaid interest.

Northwest intends to use the net proceeds of the offering, together with existing resources, to repay approximately $70-million of Brazilian term loans maturing in December, 2016, with an interest rate of 10.3 per cent, to finance the acquisition of a $19.1-million (13.5 million euros) medical office building located in Hamburg, Germany, to finance the future repayment of higher-cost convertible debentures with 2017 par calls and for general trust purposes.

Collectively, the offering and identified use of proceeds are expected to be immediately accretive and generally leverage neutral. The REIT continues to execute on its strategy of repaying higher-cost debt to lower its overall cost of capital and generate accretive growth in its target markets.

The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close on or about Dec. 15, 2016.

The debentures will be offered pursuant to the REIT's base-shelf prospectus dated Sept. 12, 2016. The terms of the debentures will be described in a prospectus supplement to be filed with securities regulators in all provinces and territories of Canada and may also be offered by way of private placement in the United States.

German MOB acquisition

The REIT has entered into an agreement to acquire, subject to customary closing conditions, a medical office building located in Hamburg, a major port city in northern Germany, which is the second-largest city in the country having a population of approximately five million. The medical office building comprises approximately 60,000 square feet and is substantially full. The building has a roster of medical tenants that have entered into inflation-indexed leases having a weighted-average lease expiry in excess of seven years. The acquisition price, subject to customary adjustments, is approximately $19.1-million (13.5 million euros), representing an approximate 6.2-per-cent initial capitalization rate. This acquisition brings the REIT's German portfolio to 21 properties and marks the continuing growth of the REIT's health care real estate presence in this region. Closing is expected to occur in the first quarter of 2017 and to be immediately accretive, and will be financed from an in-place mortgage of approximately 8.4 million euros ($11.9-million) having an interest rate of 1.81 per cent and from internal resources.

About Northwest Healthcare Properties

Northwest Healthcare Properties 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 health care real estate infrastructure composed of interests in a diversified portfolio of 137 income-producing properties and 9.2 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 nine offices in five countries to serve as a long-term real estate partner to leading health care operators.

We seek Safe Harbor.