Benzinga | Jul 26, 2021 12:37PM EDT

Alset EHome Shares Down 19% Monday; Co. Earlier Announced Successful Completion Of Purchase Of Ivy Brook Medical Center; Also Highlighted Recent Series Of Deals To Buy Several Medical Facilities In Texas, Pennsylvania

Alset EHome International Inc. (NASDAQ:AEI) ("AEI" the "Group" or "Company"), a diversified holding company principally engaged through its subsidiaries in the development of EHome communities and other property development, financial services, digital transformation technologies, biohealth activities and consumer products, is pleased to announce that American Medical REIT ("AMRE", or the "REIT") successfully completed the acquisition of Ivy Brook Medical Center ("Ivy Brook"), a 40,000 square foot first-class medical facility located in Shelton, Connecticut. Considered Fairfield County's most prestigious medical facility, Ivy Brook provides a vast array of medical practices and related services in a patient-friendly and inviting outpatient campus.

AMRE Asset Management Inc. ("AAMI"), an indirect associate of the Company, is the manager of AMRE.

This successful maiden acquisition by AMRE follows the Group's entry into a material binding term sheet with Document Security Systems, Inc. (NYSE: DSS) on March 3, 2020, through the Group's indirect majority-owned subsidiary, LiquidValue Asset Management Pte Ltd, to establish both AMRE Asset Management Inc. ("AAMI") and AMRE.

In addition to the acquisition of Ivy Brook, AMRE has recently entered into a series of agreements and letters of intent to acquire several medical facilities in Texas and Pennsylvania. The management team leading AMRE continues to work actively on closing multiple transactions and is building a strong pipeline of future medical facilities acquisition opportunities.

AMRE focuses on acquiring and managing credit worthy single-tenant, single property transactions in the $10 million to $60 million range and portfolio deals of larger scale. Moving forward, AMRE targets to generate an initial rental yield in the 7-9% range and pay a quarterly dividend up to 8% in annualized yield to the investors.

"We believe that the medical REIT space is a great avenue for hedging against today's unstable and volatile global macroeconomic landscape as medical assets have historically been regarded as recession-proof," stated the Company's Chairman and Chief Executive Officer, Heng Fai Ambrose Chan. "This is an extremely scalable and lucrative business model. Backed by the stellar team we have onboard, we are confident of growing the REIT exponentially and having it listed on global exchanges in time to come."

AMRE is headed by a highly experienced management team that has a track record of success and profitability monetizing medical real estate, having served as hospital CEOs, Fortune 500 health industry executives and officers, and public REIT executives. They have closed and managed over $2 billion worth of acquisitions comprised of 200 properties across the United States of America.

The management team in AMRE also consists of key members of the founding team of Global Medical REIT Inc. (GMRE), led by Mr. Chan who started the company from ground zero. Today, GMRE is listed on the New York Stock Exchange with a market capitalization of over US$1 billion and is listed on the MSCI US REIT Index - a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs).