BLUCAP’s Fleury Medical Centre increases in value

06/10/18

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.

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