INDIANAPOLIS, Sept. 7 /PRNewswire-FirstCall/ -- Windrose Medical Properties Trust , a self-managed specialty medical properties REIT, announced today that its development subsidiary, Hospital Affiliates Development Corporation (HADC), will construct a $33.2 million surgical hospital, with an attached parking deck, on a 2.3 acre site in Houston, TX. The project will be self-developed by Windrose in conjunction with financing provided by Huntington National Bank, Windrose's primary lender. In addition, a second project, an adjoining four-story medical office building and parking structure on a contiguous 2.3 acre parcel, is expected to commence later this year.
The hospital structure will be a 126,000 square foot acute care specialty hospital specializing in orthopedic and neurological surgery. The facility will be leased from Windrose pursuant to an eighteen-year lease by the hospital to be known as Foundation Surgical Hospital (FSH). FSH is a joint venture between a diverse group of 24 orthopedic surgeons and neurologists including the initial project sponsors Dr. Henry J. Blum, Dr. William J. Bryan and Dr. Stanley C. Jones, and Foundation Surgery Affiliates (FSA). FSA, headquartered in Oklahoma City, is a leading for-profit operator of ambulatory surgery centers and other specialty treatment facilities. FSA will serve as the manager of FSH operations. This will be FSA's second surgical hospital owned in conjunction with sponsoring physicians.
The second project, an adjacent medical office building, will consist of 99,289 rentable square feet with a 377 space parking structure. The building is currently 81% pre-leased and will house some of the orthopedic physician offices and other administrative functions. Windrose has purchased the land and the pre-development contracts have been assigned to Windrose while it completes the architectural drawings to determine a Guaranteed Maximum Price (GMP) with the contractor and arrange financing. It is expected that several physicians and FSA will also have an ownership interest in the medical office building. Construction on the medical office building is expected to commence within two to three months.
"A successful group of surgeons has come together to form this center of orthopedic excellence in Houston's vibrant healthcare market and we are excited to put this property under development for Windrose's ownership. With the expected medical office building, HADC should clearly achieve its 2004 objective of REIT-owned development," commented Fred S. Klipsch, Chairman and Chief Executive Officer, Windrose Medical Properties Trust.
About Foundation Surgery Affiliates (FSA)
Established in 1996, FSA has ten other outpatient facilities in various stages of planning and development, and operates, as a minority owner and manager, twelve ambulatory surgery centers and two imaging centers in Texas and Pennsylvania.
About Windrose
Windrose is a self-managed Real Estate Investment Trust (REIT) based in Indianapolis, Indiana with offices in Nashville, Tennessee. Windrose was formed to acquire, selectively develop and manage specialty medical properties, such as medical office buildings, outpatient treatment and diagnostic facilities, physician group practice clinics, ambulatory surgery centers and specialty hospitals and treatment centers.
Safe Harbor
Some of the statements in this news release constitute forward-looking statements. Such statements include, in particular, statements about our beliefs, expectations, plans and strategies that are not historical facts. You should not rely on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties, assumptions and changes in circumstances, many of which are beyond our control, which may cause our actual results to differ significantly from those expressed in any forward-looking statement. The factors that could cause actual results to differ materially from current expectations include financial performance and condition of our lessees, adverse changes in healthcare laws, changes in economic and general business conditions, competition for specialty medical properties, our ability to finance our operations, the availability of additional acquisitions, regulatory conditions and other factors described from time to time in filings we make with the Securities and Exchange Commission. The forward-looking statements contained herein represent our judgment as of the date hereof and we caution readers not to place undue reliance on such statements. We do not undertake to publicly update or revise any forward-looking statement whether as a result of new information, future events or otherwise.
Contact: Investors/Media: Windrose Medical Properties Trust The Ruth Group Fred Farrar Stephanie Carrington/Jason Rando President and COO 646 536-7017/7025 317 860-8213 scarrington@theruthgroup.comjrando@theruthgroup.com
Windrose Medical Properties TrustCONTACT: Fred Farrar, President and COO, Windrose Medical PropertiesTrust, +1-317-860-8213; Investors/Media, Stephanie Carrington,+1-646-536-7017, scarrington@theruthgroup.com, or Jason Rando,jrando@theruthgroup.com, +1-646-536-7025, both of The Ruth Group, for WindroseMedical Properties Trust
