INDIANAPOLIS, Nov. 19 /PRNewswire-FirstCall/ -- Windrose Medical Properties Trust , a self-managed specialty medical properties REIT, announced today that its development subsidiary, Hospital Affiliates Development Corporation (HADC), has agreed on a Guaranteed Maximum Price of $23.7 million for the construction of its previously announced professional medical office building in Houston, TX. The project will be self-developed by Windrose with financing provided by Huntington National Bank, Windrose's primary lender, and other members of the syndicate pool. Construction on the medical office building is expected to commence in December 2004 with a target completion date of December 2005, which coincides with target completion of physician-owned hospital currently under development.
Foundation Medical Office Building is a four-story medical office building consisting of approximately 99,300 rentable square feet with a 377 space parking structure. The building is situated on a 2.3-acre parcel contiguous to the previously announced 126,000 square foot physician-owned hospital development project known as Foundation Surgical Hospital (FSH). The building is currently 81% pre-leased for medical office and administration functions with lease terms ranging from seven to 18 years. It is anticipated that several physicians and FSA will also have an ownership interest in the medical office building.
"With the pricing and financing in place, we are in position to begin construction of this project adjacent to FSH. We are pleased to be associated with the development of what the surgeons envision as an orthopedic center of excellence in Houston's vibrant healthcare market. HADC now has $56.9 million of REIT majority-owned properties under development, surpassing our 2004 objective of $50 million," 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 of Windrose Medical PropertiesTrust, +1-317 860-8213; Investors/Media: Stephanie Carrington,+1-646-536-7017, scarrington@theruthgroup.com, or Jason Rando,+1-646-536-7025, jrando@theruthgroup.com, both of The Ruth Group