Global Medical REIT Inc. Provides Acquisition Update
May 23 2017 - 8:30AM
Business Wire
Company Announces Planned Acquisition of the
Carrus Specialty Hospital and the Carrus Rehabilitation Hospital
for an Aggregate Purchase Price of $26 million
Global Medical REIT Inc. (NYSE:GMRE) (the “Company”) is a
Maryland corporation engaged primarily in the acquisition of
licensed, state-of-the-art, purpose-built healthcare facilities and
the leasing of these facilities to leading clinical operators with
dominant market share. In keeping with the practice of announcing
the signing of purchase agreements that are materially significant
to its portfolio, the Company announced today that on May 17, 2017
it entered into a purchase contract to acquire from SDB Partners,
LLC (the “Seller”) the Carrus Specialty Hospital and the Carrus
Rehabilitation Hospital with 81,352 combined square feet (including
17,529 square feet of shell space) (collectively, the “Facility”)
for an aggregate purchase price of $26 million. The Carrus
Specialty Hospital is a physician owned post-acute care facility
and the Carrus Rehabilitation Hospital is an inpatient
rehabilitation facility, both located in Sherman, Texas.
Additionally, the Company has agreed to provide in the future,
subject to certain conditions, (i) a tenant improvement allowance
of $2 million and (ii) up to $5 million for the purpose of
expanding the Facility. The acquisition is expected to close no
later than July of 2017 and the Company expects to fund this
acquisition using borrowings from its revolving credit
facility.
The Facility is currently leased by the Seller to two affiliated
tenants, Texoma Hospital Partners, LLC (“THP”) and Carrus
Rehabilitation Hospital, LLC (“Carrus Rehab”), the operators of the
respective hospitals. Upon the closing of the acquisition, the
Company, through a wholly-owned subsidiary of its operating
partnership, intends to enter into a new, 20-year triple net lease
(the “Lease”) with the Seller, as tenant, who then intends to enter
into two separate subleases with THP and Carrus Rehab. The initial
rent for the Facility in accordance with the terms of the Lease
will be based on a capitalization rate of 8.8%. Carrus Healthcare,
LLC, a Texas limited liability company, THP and Carrus Rehab intend
to serve as guarantors of the Lease on a joint and several
basis.
David Young, the Company’s Chief Executive Officer, stated, “As
I discussed during our recent Q1 earnings call, we have been
working on a number of acquisition opportunities that we were eager
to provide details about to our investors. One of those
opportunities, the acquisition of the Carrus Specialty Hospital and
the Carrus Rehabilitation Hospital will be a great addition to our
portfolio when the deal closes, with very healthy rent coverage and
an attractive cap rate. We look forward to advancing more
opportunities within our pipeline into the executed contract stage
over the coming weeks.”
About Global Medical REIT Inc.
Global Medical REIT Inc. is a Maryland corporation engaged
primarily in the acquisition of licensed, state-of-the-art,
purpose-built healthcare facilities and the leasing of these
facilities to leading clinical operators with dominant market
share. The Company intends to produce increasing, reliable rental
revenue by expanding its portfolio, and leasing each of its
healthcare facilities to a single market-leading operator under a
long-term triple-net lease. The Company’s management team has
significant healthcare, real estate and public real estate
investment trust, or REIT, experience and has long-established
relationships with a wide range of healthcare providers.
Forward-Looking Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Exchange Act, pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be identified by
the use of words such as “anticipate”, “believe”, “expect”,
“estimate”, “plan”, “outlook”, and “project” and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. Forward-looking
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times at, or by, which such performance or results will be
achieved. Forward-looking statements are based on information
available at the time those statements are made and/or management’s
good faith belief as of that time with respect to future events.
These statements relate to, among other things, the Company’s
expectations regarding the completion of the acquisition described
in this press release on the terms and conditions described herein,
the expected closing date of this acquisition; and the execution of
the leases with the stated expected lease terms. These
forward-looking statements are subject to various risks and
uncertainties, not all of which are known to the Company and many
of which are beyond the Company’s control, which could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. These risks and
uncertainties are described in greater detail in the Company’s
filings with the United States Securities and Exchange Commission
(the “Commission”), including, without limitation, the Company’s
annual and periodic reports and other documents filed with the
Commission. Unless legally required, the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. The Company
undertakes no obligation to update these statements after the date
of this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20170523005499/en/
Investor Relations CounselThe Equity Group Inc.Jeremy Hellman,
212-836-9626Senior Associatejhellman@equityny.comorAdam Prior,
212-836-9606Senior Vice Presidentaprior@equityny.com
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