SOLD - Pharmacy & Medical Office Portfolio

Halifax, Nova Scotia

Building

Stats

Property Type Special Purpose - Other
Building size (SF) 333,000
Price $80,000,000 CAD

Overview

The Portfolio is well-diversified in terms of tenancies, healthcare disciplines and variety of rentable area uses. The 10 largest Portfolio tenants account for 67% of total minimum rent and represent necessity-based retail and office uses with key tenant disciplines spanning from general practice medicine to pharmacies, dentistry, radiology, and physiotherapy. These tenancy types contribute toward a strong credit rent roll, with a significant portion of NOI generated by publicly funded or publicly traded tenants. From a landlord’s perspective these characteristics translate into predictable long-term cash flow and high retention ratios, as seen via an average historical occupancy of 92% over the past 3 years. Approximately 9% of the occupied NRA is leased to non-healthcare tenants, including retail, cafes, restaurants and other traditional

office, all of which further diversify a prospective investor’s cash flow.

Highlights

Exceptional opportunity to acquire a high-quality integrated pharmacy and medical office platform located in prime locations, representing a dominant collection of healthcare assets in Atlantic Canada;

The Properties are situated in mature, fully developed urban commercial nodes throughout Atlantic Canada, providing an investor with access to well-located full-service healthcare facilities within their respective markets. All of the Properties are located within approximately 1 km of primary hospitals or hospital-related ambulatory care centres;

The Portfolio is 92% leased to a strong credit roster of 138 tenants across numerous necessity-based healthcare-related retail and medical office uses. Coupled with a well-balanced lease rollover profile, the Portfolio benefits from high tenant retention and provides a manageable leasing profile;

The stability and longevity of medical office tenancies drives higher retention ratios than traditional office tenants and collectively the Properties have averaged a high historical occupancy of 92% over the past 3 years. When combined with the Portfolio’s well balanced expiry profile, investors can benefit from a secure, long-term income profile with steady growth;

The Canadian medical space offers recession-resistant demand and a governmental regulatory regime that creates limited competition. Coupled with the impending fundamental shift in Canada's demographics--seniors are projected to represent 25% of all residents by 2030--demand for medical services and related office space is expected to surge.