A Portfolio Approach
The General Partner’s objective is to create, over a period of time, a portfolio of healthcare facilities that provide exposure to this unique commercial property category. We are attracted to this sector by the long leases that are typically in place, the support provided to tenant revenues through government subsidies, and the essential services provided by tenants.
The benefit for the Limited Partnership, and investors, is that properties with longer lease terms generally provide more certainty regarding future income streams, and quality properties servicing the healthcare sector have a low risk of obsolescence. With long leases in place, incremental growth in healthcare charges, and tenants motivated to remain in the healthcare facilities due to the foot traffic created by other adjacent healthcare businesses, the value of a portfolio of healthcare facilities could be expected to match, or better, average growth rates for commercial property portfolios.
The portfolio approach also allows better loan-to-value ratios than could be achieved if the properties were acquired individually. This additional leverage improves investor returns by reducing overall cost of capital for the Limited Partnership.
The Limited Partnership will target distributions to investors of at least 5.75% per annum (Projected Cash Net Pre Tax Annual Yield on Equity).
Key highlights of this offer:
5.75% p.a. projected cash return paid monthly.
Tenants offering essential healthcare services during the pandemic.
Medical practice anchor tenant a strong incentive for long tenure of other healthcare tenants.
Initial property servicing a growing community with an older population.
$50,000 minimum investment available to wholesale investors only.
Offer closes 10 June 2022 or earlier if fully subscribed.