REIT – Real Estate Income Trust
The Northern Coast Senior Living REIT is currently filing the appropriate documentation to regulatory authorities to become a Reporting Issuer under federal (Canada) and provincial laws. It is our intent to list the units of the REIT either on the CSE or TSX-V.
Overview of the fund
- Co-investment in properties with proven management
- Focus on minority positions
- Only invests in stabilized properties with positive cash flow
- Manage-the-Manager model increases oversight
- Lower risk from smaller investments in greater number of properties
- Experienced in-house Management Team
- Ideal for investors seeking stable income
A New Twist on the REIT
- The vision of the REIT is to acquire minority positions in stabilized properties (“stabilized” means a property that has high occupancy and good rents). The REIT only invests in lower-risk properties that immediately cash-flow to our investors. Furthermore, the REIT will focus on co-investing with established owners, taking on minority positions (25% to 45% of the ownership). By investing smaller amounts in a greater number of properties, the REIT aims to diversify its portfolio and spread out potential risk all at the same time.
Innovative “2-tier” Management Model
- Building on the success of its Strategic (mortgage) Fund, Northern Coast is replicating the Fund’s 2-tier Asset Management model. The REIT’s managers will focus on due diligence and auditing, and leave the “day-to-day” management to the 3rd party managers already in place. Able and ready to step-in, the REIT’s lean management team will strive to keep costs down while increasing oversight.
- Management of the REIT is led by Benoit Lellouche and his team at Vivacity Property Management. Mr. Lellouche has over 20 years of experience managing retirement residences and senior living portfolios, acting both as Property Manager and Asset Manager. After managing a 5,800 apartment portfolio for «Residence Champlain», he joined Cadim (Part of the Caisse de Depot’s $140B pension fund) in Asset Acquisition and Management (Real-Estate). In 2004, Benoit founded the property Management firm Jalfid (now Vivacity Property Management) and managed senior residence portfolios in Ontario and Québec, in facilities ranging from Independent Living to Assisted Care, including Cognitive Care wards. Benoit’s extensive experience was build both as an owner and as a Property Manager for 3rd party private and institutional owners. This unique experience, covering more than 20 years, will enable the REIT to carefully select the right co-investments as well as take over problematic properties should the need arise.
- Over the coming decade, the REIT expects that Canadian Baby Boomers will have to stretch retirement savings due to longer lifespans, low interest rates, and an ever-increasing cost of living. The REIT believes that Baby Boomers will look to its properties to satisfy their need for reliable and safe living conditions at a predictable cost. The REIT’s management believes that the demand for Senior Living facilities will continue to grow for at least the next 10 years. More strategically, the REIT believes that it can turn potential competitors into partners by co-investing with well-established private and institutional owners, and indirectly providing the capital required to build the next wave of properties.
- The REIT will purchase minority interests in stabilized Senior Living properties, primarily in Ontario and Québec. Only properties with proven track records and reputable managers will be selected. The REIT will co-invest under specific circumstances, providing significant and strategic value to the marketplace:
- Buying out minority partners when the remaining partners don’t want to sell
- Buying a minority share from an existing owner, freeing up cash to reinvest elsewhere
- Reducing exposure of Institutional Owners without having to sell any properties
- Investing in building-code related expenditures, enabling a property to remain compliant