TORONTO, Nov. 16, 2012 /CNW/ – NorthWest International Healthcare
Properties REIT (TSXV: MOB.UN) (the “REIT“) announced today that it has closed the previously announced sale of
its existing Canadian medical office building portfolio to NorthWest
Healthcare Properties REIT (TSX: NWH.UN) (“NWHP REIT“) in two separate transactions (the “Disposition Transaction“). Concurrently, the REIT completed its previously announced
acquisition of a $170 million portfolio of international healthcare
real estate in Australia/New Zealand, Brazil and Germany (the “International Portfolio“) from NorthWest Value Partners Inc. (“NorthWest“) (the “Acquisition Transaction“).

Based on the accretive nature of the transactions, the REIT announced
that it will increase its annual distributions from $0.064 per unit to
$0.16 per unit, which is expected to represent an approximate 95% AFFO
payout ratio.

In connection with the transaction closings and distribution increase,
Paul Dalla Lana, CEO of the REIT and President of NorthWest commented:

The Disposition Transaction

As part of the Disposition Transaction, the REIT sold its existing
Canadian medical office building portfolio to NWHP REIT in two separate
transactions, effective October 1, 2012. The Disposition Transaction
was approved, by way of written consent, by the REIT’s disinterested
unitholders on September 25, 2012 and collectively resulted in net
consideration to the REIT, after the assumption of related debt and
subject to usual adjustments, of $39.2 million comprising of $9.2
million of cash and a $30.0 million promissory note.

The Acquisition Transaction

As part of the Acquisition Transaction, the REIT acquired a $170 million
portfolio of international healthcare real estate in Australia/New
Zealand, Brazil and Germany from NorthWest, entered into a series of
external management arrangements with affiliates of NorthWest, and
entered into a put / call agreement with respect to NorthWest’s
interest in NWHP REIT. The Acquisition Transaction was described in the
REIT’s October 5, 2012 management information circular and was approved
by the majority of minority unitholders of the REIT at its October 30,
2012 annual and special meeting. The Acquisition Transaction is
effective October 1, 2012 and was funded through (a) the issuance of
9,878,165 REIT units at a deemed price of $1.87 per unit (approximately
$18.5 million), (b) the issuance of 55,944,444 Class B LP Units of NWI
Healthcare Properties LP, a subsidiary of the REIT, at a deemed price
of $1.87 per unit (approximately $104.5 million) and (c) the assumption
of existing debt of approximately $47 million. The purchase price for
the Acquisition Transaction is subject to usual adjustments.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may contain
projections and “forward-looking statements” within the meaning of that
phrase under Canadian securities laws. When used in this new release,
the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “expect” and similar expressions
may be used to identify forward-looking statements. Those statements
reflect the REIT’s current views with respect to future events or
conditions, including matters relating to expected AFFO, future
distributions, the accretive nature of the Acquisition and the REIT’s
growth prospects. By their nature, forward-looking statements reflect
management’s current views, beliefs and assumptions and are subject to
certain risks and uncertainties, known and unknown, including, without
limitation, risks disclosed in the information circular of the REIT
mailed in connection with the annual and special meeting of unitholders
held October 30, 2012. 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. Although the forward-looking
information contained in this news release is based upon what
management believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these
forward-looking statements. Certain statements included in this news
release may be considered “financial outlook” for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this news release. 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.

SOURCE NorthWest Healthcare Properties Real Estate Investment Trust