The price has been set at $14.10 per share, which will net the medical properties REIT about $40.7 million. The closing of the offering is expected to occur on Monday, Nov. 28. Cohen & Steers Capital Advisors, LLC and Robert W. Baird & Co. Incorporated are the placement agents.
Windrose has closed on about half of the properties in the portfolio it is acquiring. Closings for the remaining properties are expected to be completed before the end of the year.
The portfolio spans four states, Florida, Arizona, California and Texas, but 16 of the properties, representing 60% of the square footage, are located in Florida. The Florida properties sustained moderate damage from Hurricane Wilma but are all operational and much of the cost to repair the properties will be passed through to tenants, according to a statement from Windrose.
As of Oct. 1, the portfolio was 93.7% occupied. Windrose says it expects to push occupancy by 200 to 300 basis points over the next four months. Occupancy could fall again in 2007 and 2008, when leases expire for about one-third of the square footage in the portfolio.
In June 2005, Windrose issued 2.1 million shares of 7.5% Series A Cumulative Convertible Preferred Shares, raising net proceeds of approximately $51 million. The proceeds were partially used to repay indebtedness incurred in connection with the acquisition of three properties in June 2005. Those three properties and the portfolio now being acquired have a common, undisclosed seller.
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