NWH.UN Northwest Healthcare Properties Real Estate Investment Trust

NorthWest Healthcare Properties Real Estate Investment Trust (“NorthWest” or the “REIT”) (TSX: NWH.UN) announced today a public offering, on a "bought deal" basis, of 11,740,000 trust units (the “Units”) at a price of $10.65 per Unit representing gross proceeds of approximately $125 million (the "Offering"). The Offering is being made through a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets.

The REIT has also granted the underwriters the option to purchase up to an additional 1,761,000 Units to cover over-allotments, if any, exercisable in whole or in part anytime up to 30 days following closing of the Offering.

The REIT intends to use the net proceeds of the Offering to repay debt, which currently bears an interest rate of 6.8% and partly satisfy certain funding milestones related to the Property Transaction. The REIT expects that the immediate repayment of debt will better position NorthWest to execute the previously announced $1.2BN acquisition of an 11 property Australian hospital portfolio from Healthscope Limited and its affiliates (the “Property Transaction”), while prudently managing its consolidated leverage. The Offering is expected to reduce consolidated leverage by approximately 240bps to approximately 57% post completion of the Property Transaction and the Offering, and the REIT reiterates its medium-term leverage target of 50% as it sees opportunity to strengthen its balance sheet and capital structure through the repayment of high-cost corporate debt with continued capital recycling activities.

Further information related to the Property Transaction is contained in the REIT's press release dated January 31, 2019 and material change report dated February 8, 2019.

The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close on or about February 26, 2019. The Offering is not subject to successful completion of the Property Transaction.

The Units will be offered pursuant to the REIT's base shelf prospectus dated October 19, 2018. The terms of the Offering will be described in a prospectus supplement to be filed with securities regulators in all provinces and territories of Canada and may also be offered by way of private placement in the United States.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About NorthWest Healthcare Properties Real Estate Investment Trust

NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. As at September 30, 2018 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 153 income-producing properties and 10.8 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 Statements

This press release contains "forward-looking statements" within the meaning of applicable securities laws, including statements about the Offering and the proposed use of proceeds thereof, the Property Transaction, and the targeted leverage levels post completion of the Property Transaction and the Offering. The forward-looking statements in this news release are based on certain assumptions, including without limitation that all conditions to completion of the Offering and the Property Transaction will be satisfied or waived, and funding will be obtained as expected to complete the Property Transaction. 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 Offering and the Property Transaction will not be completed on the terms proposed, or at all or that other developments may arise that result in the REIT having to further increase its leverage. 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 28, 2018, a copy of which may be obtained on the SEDAR website at www.sedar.com.

For further information, please contact Paul Dalla Lana, CEO at (416) 366-8300 x 1001.