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Newmark announces $300 million sale of Western Canada senior housing portfolio

The sale consisted of eight properties with 1,092 suites across Western Canada
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Newmark's Mark Gallagher says that the transaction is the best of both worlds for staff, residents and resident families | Maskot/DigitalVision/Getty Images

Newmark announced this week the completion of a $300 million sale of its Western Canadian continuum of care portfolio, which consists of eight properties with 1,092 suites in Western Canadian communities.

According to the company’s media release, the portfolio was traded from H&H Total Care Services Inc. to a joint venture partnership between Axium Infrastructure, an independent portfolio management firm with offices in Canada, the U.S. and the U.K., and Optima Living, a Western Canada-focused owner and operator.

“This strategic portfolio transaction provides the joint venture partnership with immediate scale and considerable market share of funded seniors housing residences in Western Canada,” said Mark Gallagher, executive managing director at Newmark, in the release.

In a statement to BIV, Gallagher said that the residences in the transaction are relatively new, with an average age of 10 years, and will provide an important service to their Western Canadian communities.

“We believe that these assets are set up for long-term success and growth. Together, the joint venture provides the community style, local ‘boots on the ground’ expertise in day-to-day operations as well as an institutional-level asset management style that will ensure the buildings are well maintained over a long-term investment horizon. The transaction outcome is a best-of-both-worlds scenario for the staff, residents and resident families,” Gallagher said in the statement.

The portfolio specifically consists of a mix of assisted living and independent living suites, as well as funded long-term care and complex care beds, and private pay complex care beds, according to Newmark.

Three of the assets in the portfolio have the opportunity for further development, with over 360 units worth of expansion opportunities.

Gallagher says that the excess land is located in the Vernon and Duncan properties.

“Vernon is shovel-ready for a 71-unit addition to the site and Duncan allows for a 120-unit expansion on the property. However, the buyers have not indicated any plans or timing for developing these projects,” he said.