In 2018, Blucap purchased the Centre médical Fleury project, a building located at 241 Fleury Ouest, in Ahuntsic, Montreal. This building was purchased because of the government’s new policy of gradually relocating medical specialists to outpatient clinics subsidized by the MSSS. This Governement policy constitutes an excellent opportunity for Blucap investors.
Blucap has developed a business model to respond to this type of opportunity that would allow the trust to own 50% of the medical centre. The latter includes a pharmacy, a permit to operate an MRI device and the possibility of building 2 additional floors.
Since the purchase, many changes have been made to increase the NOI which now translates to an economic value reaching over $5M.
ABOUT THE GOVERNMENT PROGRAM: Government expenditures for the management of outpatient medical clinics in terms of leases, renovations, improvements and spatial adaptations, energy consumption (lighting, operation of medical and non-medical equipment, heating, air conditioning, ventilation), maintenance, sanitation and hygiene services, transportation, medical supplies, etc. are equivalent to between 40% and 50% of physicians’ gross income. Quebec’s Ministère de la santé et des services sociaux (MSSS) considers these expenditures to be too high for its budget, especially given that they are variable and on the rise. It therefore wishes to reduce the said costs or at least to set a reasonable and acceptable limit to them by relocating medical specialists to outpatient clinics.