A joint venture between Flagship Healthcare Properties and AEW Capital Management has sold a fully leased portfolio of eleven surgery centres in the US to BGO. The acquisition was announced by BGO on Wednesday. The portfolio spans 223,000 square feet across nine markets: Dallas-Fort Worth; Chicago; St. Louis, Mo.; Nashville, Tenn.; Lakeland-Winter Haven, Fla.; Columbia, S.C.; Huntsville, Ala.; Kalamazoo-Portage, Mich.; and Prescott, Ariz.
Flagship Healthcare Properties will continue to manage the properties for BGO. One of the properties in the portfolio is the Tri-City Surgery Center in Prescott, which comprises 12,718 square feet and includes three operating rooms as well as one treatment room. The purchase price for the portfolio was not publicly disclosed. A spokesperson for BGO declined to comment, while CBRE, which brokered the sale for the vendors, did not immediately respond to an enquiry.
Specialised Healthcare Properties
The acquired healthcare facilities feature specialised surgical infrastructure for a range of outpatient procedures. These include practices from ophthalmology, orthopaedics, gastroenterology, ENT, podiatry, plastic and reconstructive surgery, pain management, urology, and endoscopy. This diversification reflects the growing need for specialised outpatient care services.
Michael Keating, Managing Partner at BGO, commented on the acquisition: “We firmly believe that outpatient surgery centres are an increasingly important component of the US healthcare system, and we are pleased to add a portfolio of this size and geographic breadth to our core US strategy. We also appreciate the work of Flagship Healthcare Properties and AEW Capital Management in building and managing these assets, and look forward to working closely with Flagship as it continues to manage the properties on our behalf.”
Previous Investments in the Healthcare Sector
This is not BGO’s first foray into the healthcare real estate market. In May, the investment firm, formerly known as BentallGreenOak, acquired a medical office building in Riverview, Florida. Already in January, the Lahey Medical Center, an outpatient facility in Londonderry, New Hampshire, was purchased by BGO. Additionally, BGO is collaborating with Anchor Health Properties to acquire and manage several more properties in the US.
- —Chris Bodnar, Brannan Knott, Zack Holderman, Anthony Sardo, Cole Reethof and Jesse Greshin from CBRE represented the vendors in this transaction.
- —Goodwin Procter acted as legal counsel for BGO.
