(MENAFN- Newsfile Corp) Toronto, Ontario--(Newsfile Corp. - November 9, 2025) - Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH) (the " REIT " or " Northwest ") today announces it has entered into a conditional agreement for the internalization of management (the " Internalization ") at Vital Healthcare Property Trust (" Vital ").

"We are pleased to enter into an agreement for the Internalization of Vital, which will deliver immediate operational and financial benefits for both Northwest and Vital," said Zachary Vaughan, Chief Executive Officer of Northwest. "Internalizing Vital's management is fully aligned with our strategy to simplify our business, reallocate capital back to North America, and create value for our unitholders. This transaction further strengthens our balance sheet and demonstrates our continued commitment to disciplined capital allocation. For Vital, the Internalization is expected to deliver enhanced returns to unitholders (including Northwest as Vital's largest unitholder) and solidifies Vital's position as a leading investor in and developer of healthcare infrastructure in the Australasian market."

As a result of this transaction, Northwest expects to receive NZ$214 million (approximately $170 million) in cash in exchange for its external management rights over Vital. Vital will fund the Internalization by way of a capital raise launched concurrently with the announcement today. Northwest will remain Vital's largest unitholder, with an approximate 24% equity interest post capital raise.

Northwest intends to use the proceeds from the Internalization to further reduce leverage and capitalize on accretive growth initiatives. Operational efficiencies from the Internalization are expected to include significant reductions in general and administrative expenses, simplified operations, and a lower headcount.

Closing of the Internalization is conditional on a number of matters, including Vital lender consents; regulatory approvals; and a Vital capital raise of at least NZ$175 million, net (approximately $140 million). The Internalization is expected to be completed on December 31, 2025, or, if more time is required to satisfy the closing conditions, in the first quarter of 2026.

Northwest will not participate in the upcoming Vital capital raise, which allows Vital to broaden its unitholder base and overall liquidity. Northwest has agreed to maintain it's existing unitholding until February 2026 and will maintain two representatives on Vital's Board based on its resulting equity holding.

Northwest will release its financial results for the third quarter ended September 30, 2025, on Tuesday, November 11, 2025, after the markets close. A conference call to discuss these results will be held on Wednesday, November 12, 2025, at 10:00 a.m. ET.

About Northwest

Northwest provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at August 12, 2025, of interests in a diversified portfolio of 168 income-producing properties and 15.8 million square feet of gross leasable area located throughout major markets in North America, Australasia, Brazil and Europe. The REIT's portfolio of medical outpatient buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. Northwest leverages its global workforce in eight countries to serve as a long-term real estate partner to leading healthcare operators. For additional information please visit: .

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