On August 8, 2024, Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN), a leading Canadian REIT specializing in healthcare real estate, completed the sale of its UK portfolio to Assura PLC for gross proceeds of £500 million (C$885 million). The transaction, which was part of a broader strategic review, involved 80% of the proceeds paid in cash (£400 million) and the remaining 20% in Assura shares valued at £100 million, giving Northwest an 8% stake in Assura. The sale was executed at a cap rate of 5.9%, and the proceeds will be used to repay C$690 million in debt with a 7.9% weighted average interest rate. The transaction is expected to increase Adjusted Funds From Operations (AFFO) by 6 cents per unit annually.

This sale concludes Northwest’s strategic review process, announced in August 2023. Over the review period, Northwest, which operates extensively in Canada and other global regions, divested C$1.4 billion in properties and C$0.2 billion in unlisted securities, reducing its debt from C$4.2 billion to C$3.0 billion. Legal counsel for Northwest was DLA Piper (Canada) LLP, while financial advisory services were provided by Scotiabank, RBC Capital Markets, and Deutsche Bank Securities. Assura PLC, a UK-based REIT, was advised by Barclays, CMS, and Addleshaw Goddard.

Northwest’s management emphasized ongoing efforts to simplify the business, deleverage, and strengthen its balance sheet, focusing on healthcare real estate to drive future growth, both in Canada and globally.