BETHESDA, Md.--(BUSINESS WIRE)--Global Medical REIT Inc. (NYSE:GMRE), a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to strong clinical operators with leading market share, today announced the following event:

Closing of the Acquisition of the Belpre Medical Office Portfolio– Belpre, Ohio

On April 19, 2018, the Company completed the previously announced acquisition of the Belpre Medical Office Portfolio in Belpre, Ohio for an aggregate purchase price of $64.2 million, $5.5 million of which was paid in operating partnership units of the Company’s operating partnership at a per unit price of $9.00. Upon the closing of this acquisition, the Company assumed the seller’s interest, as lessor, in four leases with Marietta Memorial Hospital, a subsidiary of the Memorial Health System, which is a Fitch BB- rated health system with approximately $450 million of net revenue in 2017 and is the primary hospital provider in the area.

The leases on the Belpre Portfolio are triple-net leases with a weighted average remaining lease term of approximately 11.35 years, each subject to three, five-year renewal options by the tenant. The current aggregate annual rent is approximately $5.1 million, broken down as follows:

• Building I – current annual rent of approximately $1.2 million ($23.61 per square foot), subject to $50,300 increases every five years, with the next increase due to go into effect in 2021.
• Building II – current annual rent of approximately $0.6 million ($22.50 per square foot), subject to $25,000 increases every five years, with the next increase due to go into effect in 2018.
• Building III – current annual rent of approximately $0.8 million ($33.17 per square foot), subject to $25,000 increases every five years, with the next increase due to go into effect in 2022.
• Building IV – current annual rent of approximately $2.5 million ($45.35 per square foot), subject to 10% increases every five years, with the next increase due to go into effect in 2019.

The initial capitalization rate for the property is approximately 7.9%. Please see the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission today for a more detailed description of the acquisition and lease terms, including the leases which are filed as exhibits to that Current Report.

Jeffrey Busch, the Company’s Chief Executive Officer, commented, “We are excited to be partnering with Memorial Health System, which is the largest hospital system in the area. This acquisition fits squarely into our primary investment strategy of acquiring medical office buildings in secondary and tertiary markets with strong tenants. Additionally, the acquisition of the Belpre Portfolio brings our overall gross portfolio size to approximately $600 million, which is yet another milestone achieved for our company.”

About Global Medical REIT Inc.

Global Medical REIT Inc. is a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to strong clinical operators with leading market share. The Company’s management team has significant healthcare, real estate and public real estate investment trust, or REIT, experience and has long-established relationships with a wide range of healthcare providers. The Company elected to be taxed as a REIT for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2016.