NorthWest Healthcare Properties REIT Announces Successful Completion of Previously Announced Public Equity Offering and Exercise of Over-Allotment Option for Gross Proceeds of $253,150,000

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TORONTO, Dec. 19, 2019 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) ("NorthWest" or the "REIT") is pleased to announce today that it has completed its previously announced public offering (the "Public Offering") of 20,750,000 trust units ("Units") of the REIT at a price of $12.20 per Unit (the "Offering Price") for total gross proceeds of $253,150,000, which includes proceeds from the exercise of an over-allotment option to purchase up to an additional 2,767,500 Units. The Public Offering was conducted on a bought deal basis through a syndicate of underwriters co-led by BMO Capital Markets, RBC Capital Markets and Scotiabank.

Together with the previously announced $25.0 million private placement to NorthWest Value Partners Inc., which is expected to close in January 2020, (the "Private Placement" and together with the Public Offering, the "Offering"), the total gross proceeds of the Offering is approximately $278.1 million.

Upon closing of the Private Placement, NWVP will hold an approximate 15.8% effective interest in the REIT through ownership of Units and Class B LP units.

The REIT intends to use the net proceeds of the Public Offering and the Private Placement to repay approximately $242 million of corporate debt with a weighted average interest rate of approximately 6.1% and a weighted average term to maturity of approximately three years, as well as to expand its European platform through the acquisition of three properties (two clinics in Germany and one medical office building in the Netherlands) for a combined purchase price of approximately $68.5 million at a weighted average stabilized capitalization rate of approximately 5.8% (the "European Properties").

The Units were offered in each of the provinces and territories of Canada pursuant to the REIT's base shelf prospectus dated October 19, 2018. The terms of the Offering are described in a prospectus supplement filed with Canadian securities regulators. A copy of the prospectus supplement is available under the REIT's profile on the SEDAR website at www.sedar.com.

About NorthWest Healthcare Properties Real Estate Investment Trust

NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 174 income-producing properties and over 14 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 180 professionals across nine offices in five countries to serve as a long term real estate partner to leading healthcare operators.

Forward Looking Information

This press release contains "forward-looking statements" within the meaning of applicable securities laws, including statements about the Public Offering, the Private Placement and the proposed use of proceeds thereof, the expected closing of the Private Placement, the completion of the acquisitions of the European Properties, stabilized capitalization rates, NWVP's expected ownership levels, and the repayment of debt. The forward-looking statements in this news release are based on certain assumptions, including without limitation that all conditions to completion of the Private Placement and the acquisitions of the European Properties will be satisfied or waived, the European Properties will perform as expected and additional equity capital will be obtained in the future. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the risk that the acquisition of the European Properties will not be completed on the terms proposed, or at all. The statements in this news release are made as of the date of this release. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. A discussion of the risk factors applicable to the REIT is contained under the heading "Risk Factors" in the REIT's annual information form dated March 15, 2019, and the REIT's prospectus supplement dated December 12, 2019 and the REIT's other public filings, copies of which each may be obtained on the SEDAR website at www.sedar.com. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The REIT does not intend to, nor assume, any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. Accordingly, this news release does not constitute an offer for sale of securities in the United States.

SOURCE NorthWest Healthcare Properties Real Estate Investment Trust

Paul Dalla Lana, CEO, NorthWest Healthcare Properties REIT, [phone] x1001

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