GT Canada Medical Properties REIT Announces an Acquisition of a Medical Office Building in Orillia

GT Canada Medical Properties REIT announced it has completed the previously announced acquisition of the Orillia Medical Office Building. The building is adjacent to the Soldier's Memorial Hospital and has served the Orillia and surrounding communities for over twenty years. The 21,000 square foot building is occupied by physicians and other medical tenants including a pharmacy, lab and x-ray and is fully leased.

The property was acquired for $6.8 million, which represents a 7.75% cap rate applied to the year one net operating income. The REIT also purchased an additional land parcel for $150,000 for future expansion. The REIT assumed $3.5 million in mortgage debt bearing interest at a five year fixed rate of 4.19% per annum. The balance of the purchase price was drawn on its revolving acquisition credit facility. The acquisition was approved by the REIT's unitholders at a meeting held November 29, 2011.

This investment is the REIT's eighth acquisition.

In the last twelve months, the REIT has acquired seven properties at an average cap rate of 8.2%.

"We are very proud of our progress in the last year", stated Andrew Shapack, the REIT's CEO, "today's acquisition is another demonstration of our commitment to growth and the continued execution of our business plan to create a portfolio comprised exclusively of medical office buildings that are physician intensive with high occupancies."
 

on December 9, 2011