Global Medical REIT (NYSE:GMRE) mentioned Tuesday Pipeline Health, the tenant at GMRE’s White Rock Medical Center in Texas, will assume its leases as a part of its authorised reorganization plan.
Pipeline will assume the leases topic to amendments to facilitate its exit from chapter proceedings.
Proposed amendments relate to Global Medical (GMRE) contingently offering up to $3.8M of proposed new capital expenditure, and software of a portion of Pipeline’s safety deposit to rental funds due in the course of the first yr after chapter. The amendments haven’t been finalized.
There will likely be no modifications to potential money rents, rental fee per sq. ft., potential hire escalations, or lease time period.
“We consider Pipeline restructured itself with a narrower focus that features the Dallas, Texas market, which ought to present it a firmer footing to climate what has been a difficult marketplace for acute-care hospitals,” mentioned Global Medical (GMRE) CEO Jeffrey Busch. “Because we structured the unique transaction with important credit score safety, we will present Pipeline some post-bankruptcy working flexibility with out hire deferrals.”
Pipeline should pay any pre-petition rents owed to Global Medical (GMRE). Pipeline paid all rents due to the REIT in the course of the chapter course of.
Last week, Pipeline assumed Medical Properties Trust’s (MPW) grasp lease of 4 Los Angeles hospitals and two medical workplace buildings.