Canada-based NorthWest Healthcare Properties Real Estate Investment Trust (REIT) has proposed to acquire Australian Unity Healthcare Property Trust (AUHPT) for about $2.1bn (C$2.6bn).
AUHPT portfolio includes 62 hospitals, medical office buildings and other healthcare facilities. Its development pipeline is said to be worth nearly $386m (A$500m).
Under put and call option arrangements with Hume Partners, NorthWest previously acquired 5.1% direct interest in AUHPT. The REIT along with a capital partner now made an all-cash offer for a 100% stake in the hospital owner.
The proposed deal value is approximately 30% premium to AUHPT’s unaffected unit price as of 17 February 2021 and 16% premium to its present unit price.
NorthWest and its capital partner own 5.1% of the total issued and outstanding AUHPT Units value, as well as options for a further 11.1%, representing a total of 16.2% beneficial ownership. This makes NorthWest the largest beneficial unitholder in AUHPT.
The proposed transaction secured approval from the Australian Foreign Investment Review Board (FIRB) but is subject to AUHPT unitholder approval.
In a statement, NorthWest said: “At the Scheme Meeting, AUHPT unitholders will have the opportunity to vote on the proposed transaction.
“If 75% of the value of the AUHPT units are voted in favour of the proposed transaction by AUHPT unitholders that are entitled to vote, the proposed transaction will be approved.”
Upon approval, the acquisition is set to close next month.
NorthWest plans to fund its portion of the acquisition value with existing liquidity as well as new debt facilities obtained in connection with this deal. RBC Capital Markets and Scotiabank are financial advisors to the REIT.
Last week, Ramsay Health Care agreed to acquire UK-based private hospital group Spire Healthcare for approximately $1.4bn.