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Northwest Healthcare makes biggest acquisition yet

Since going public in March, Northwest Healthcare Properties REIT has not sat back on its heels. Instead, it aggressively sought out buildings that fit into its health care services portfolio.

The company has spread its purchases out, scooping up properties in Alberta, Ontario and Quebec. Its latest is in the heart of Toronto's hospital district, and it carries the biggest price tag the REIT has paid yet: $103-million. That isn't an extraordinary amount, but the firm is still small, having gone public just this year.

The acquired Dundas-Edward Centre is a 410,000 square foot two-tower office complex located in what is known as Toronto's Discovery District, known for its focus on medicine and innovation. The purchase price equates to about a 7 per cent capitalization rate.

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The new property will boost the REIT's portfolio by 13 per cent, according to National Bank Financial analyst Heather Kirk. Since March, Northwest has increased its portfolio by about 40 per cent, or almost $220-million based on acquisition cost.

Like Tahoe Resources, which was in the market this morning, Northwest Healthcare has had a successful run since its IPO. The units are up about 12 per cent since March.

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About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

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