Global Medical REIT (GMRE) Enters $30.9M of Purchase Contracts
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Global Medical REIT Inc. (NYSE: GMRE) announced that it has entered into purchase contracts to acquire two projects, and has entered into an assignment and assumption agreement to assume a purchase contract for a third project, encompassing a total of eleven buildings for an aggregate purchase price of $30,860,000. The three projects, discussed further below, are the “Brown Clinic” in Watertown, SD; the “Northern Ohio Medical Specialists (“NOMS”)” portfolio in Northern Ohio; and the “Prospect Medical Office Building” in East Orange, NJ.
David Young, Chief Executive Officer of Global Medical, stated, “I am happy to announce these three acquisitions. The eleven buildings to be acquired are consistent with our strategy of acquiring high-quality assets supported by favorable healthcare fundamentals where we can execute sale-leaseback transactions beneficial to both GMR and our new tenants.”
GMR’s obligation to close these acquisitions is subject to customary conditions, including GMR’s completion of its due diligence to its satisfaction. For the Brown Clinic transaction, GMR’s earnest money deposit will become non-refundable at the end of the due diligence period on October 12, 2016. At that time, if GMR does not terminate the purchase contract, GMR will be required to make an additional, non-refundable earnest money deposit. For the Prospect Medical Office Building transaction, GMR’s earnest money deposit will become non-refundable at the end of the due diligence period on October 14, 2016. At that time, if GMR does not terminate the purchase contract, GMR will be required to make an additional, non-refundable earnest money deposit. For the NOMS portfolio, GMR’s assumption of the purchase contract will be effective if GMR elects to proceed with the closing and reimburses the assignor’s earnest money deposit by September 30, 2016, which is the expected closing date for the initial five buildings in the portfolio. GMR would be required to make an additional non-refundable earnest money deposit in order to close all seven properties in the portfolio. All deposits will be applied to the purchase price in each transaction. Although GMR believes completion of these acquisitions is probable, there is no assurance that GMR will close them.
Brown Clinic – Watertown, SD
On September 7, 2016, GMR entered into a purchase contract to acquire three buildings encompassing 46,884 total square feet for a purchase price of $9 million. The main location consists of two buildings, a 30,062 square foot clinic, built in 1966, and a 3,136 square foot administration building built in 1988. Both buildings were renovated in 2011. The third building in the portfolio, known as “Northridge,” is a 13,686 square foot clinic built in 2000 that was renovated in 2015 and 2016.
The properties are currently owned by the Brown Investment Group and operated by the Brown Clinic. Upon closing, GMR expects to lease the portfolio properties to Brown Clinic under a 15-year triple-net lease with two additional five-year renewal options.
Northern Ohio Medical Specialists (“NOMS”) – Northern Ohio
On September 13, 2016, GMR entered into an assignment and assumption agreement to assume from a third party a purchase contract to acquire a portfolio of seven properties, known as the NOMS portfolio. The NOMS portfolio covers 50,931 square feet, which GMR expects to acquire for a total purchase price of $10 million in three sequential closings. GMR expects to close the acquisition of the first five buildings after the due diligence period expires on September 30, 2016, if GMR elects to proceed with the closing and reimburses the assignor’s earnest money deposit. The remaining two buildings are currently undergoing expansions and GMR anticipates closing these transactions in December 2016, following completion of construction along with a certificate of occupancy and related due diligence. If GMR elects to proceed with closing upon completion of the due diligence period, GMR will be required to make an additional non-refundable deposit of earnest money. All earnest money deposits will be applied to the purchase price.
The NOMS portfolio is currently owned by a multi-specialty physician group which has been in operation since 2000. The group includes over 120 physicians of which approximately half are primary care providers. GMR expects to lease the properties to NOMS under a triple-net lease for an initial term of 12 years, with two additional five-year renewal options.
Prospect Medical Office Building – East Orange, NJ
On September 14, 2016, GMR entered into a purchase contract to acquire a single medical office building and treatment facility which is part of the campus of East Orange General Hospital for a purchase price of $11.86 million. The 60,442 square foot building currently houses physician offices, a 29-bed dialysis center, a wound center, a diagnostic lab, a hyperbaric chamber and a pharmacy. Upon closing, GMR expects to enter into a triple-net lease with tenant Prospect Medical Holdings (“PMH”) with an initial term of 10 years, with four five-year renewal options. PMH acquired the building in March 2016 as part of its acquisition of the East Orange General Hospital. PMH is a portfolio company of private equity firm Leonard Green & Partners.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rite Aid (RAD)/Walgreens (WBA) Antitrust Concerns Doesn't Mean Deal is Dead, Says Deutsche Bank
- Oracle (ORCL) to Acquire Apiary
- PPG Industries (PPG) Acquires Assets of Futian; Terms Not Disclosed
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesLeonard Green & Partners, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!