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ATLAS HEALTH CARE GROWTH FUND
R O M L E X I N T E R N A T I O N A L L T D .
Peter Grigoras, President & CEO472 Springbank DriveLondon, Ontario N6J 1G8
Phone: 519-435-0010Cell: 519-495-7562Fax: 519-435-0040E-mail: [email protected]
Investing in the Future
Canadian Medical Real Estate
2014
Table of Contents
Romlex Group Page Atlas Healthcare (Richmond Hill) Ltd.
1. Company Profile 3 9. Rendering 30
2. Vision and Values 4 10. Key Individuals Involved 34
3. Romlex’s Structure 5Organizational ChartOur Team
11. Floor Layout 35
12. Project Cost 42
13. Risk Management 52
4. Peter Grigoras Consulting Ltd. 9
5. Romlex: Medical Centers Operations 14-Pellark Medical Center (London, ON)-Oxford Medical Center (London, ON)
Other Projects
14. Atlas Healthcare (London Ltd.) 45
6. Romlex – Recent Developments 20-Springbank Medical Center (London, ON)
15. Nixon Medical Center – London, ON 51
Atlas City Developments Ltd. Romlex Real Estate Capital Assets7. New Developments in the GTA 25 16. Residential Real Estate Capital Assets 55
8. Reference Articles and Reports 28 17. Industrial Real Estate Capital Assets 60
18. Commercial Real Estate Capital Assets 63
19. Retail Real Estate Capital Assets 68
COMPANY’S PROFILE• Romlex International Ltd. (and group of companies) is a private Real Estate and Consulting company located
in London, Ontario incorporated in 1998, specialized in the acquisition, development and management of premier assets in Canada.
• The primary focus is to develop, construct and manage premier class Medical Centres; specifically “community based mini-hospitals” in Canada, thus creating a solid synergy with the Hospitals and healthcare providers in order to enhance efficiencies, improve the cost-effectiveness of healthcare delivery and medical services overload.
• The primary objective is to effectively consolidate a “shared interest” in the growing portfolio of healthcare that complements Integrated Medical Services as a “one stop shopping” referral base culture, providing enhanced care for the benefit of the publics (patients) interest.
• The Company provides Managed Practice Solutions, focusing mainly on the “streamlining” and “optimization” of medical practices through Electronic Medical Records (EMR), a “modern day technology utilization” providing efficient and accurate medical records & retrieval.
• The Company has also provided Consulting services in the industrial and lean manufacturing fields, Project Management for major automotive plants including design, construction, commissioning and handover.
• Romlex owns and operates subsidiary companies in the areas of construction, asset management, engineering and project management, business and medical consulting.
• Romlex is the co-owner of Medsana Pharmacy Chain as well as several walk-in-clinics
Romlex's ultimate exit strategy is to create a private Real Estate Investment Trust and to manage all of the assets under a single managerial entity.
VISION AND CORE VALUES
Our vision is to develop, construct, and manage world-class capital assets that meet the most sophisticated Canadian market demands and to become the industry's "provider of choice" by leveraging our collective talents.
We strive to conduct ourselves with unconditional commitment to our core values including “uncompromising efficiency” in every part of our business through continuous improvement and elimination of non-value added activities.
We strive to give first priority to our customers and ingrain the "customer is king" mentality within our operations.
We strive towards strategic win-win relationships and synergies with potential partners.
We strive to be the best in: service, quality, cost, timing, safety, and corporate citizenship.
ROMLEX GROUP OF COMPANIES: STRUCTURE
OUR TEAM: ORGANIZATIONAL CHART
President and CEOPeter Grigoras, B.Eng.
Developer
PartnerDenis Grigoras, J.D./LL.B.
In-House Lawyer
PartnerBrinn Norman, J.D.Securities Lawyer
Advisory BoardPeter Adams, LL.B.Corporate Lawyer
Advisory BoardGarth Howes, CPA, CA, CFP
Chartered Accountant
Financial ControllerVishal Kothari, B.Comm.,
CMA
Technical ConsultantEndri Poletti, OAA,
MRAICArchitect
Consultants● IHFQA Inc. (Dr. Hien Ta, MD, CCFP, FCFP, FRCPC andRobert
Bryan, RRT, AA, EMCA)● Avery Professional Group Inc.
(Kevin Kirkpatrick)
Associate ConsultantsFire Marshall (fire and life
safety)
Chief Operating OfficerT.B.D.
Chief Financial OfficerT.B.D.
OUR TEAM: PER GRIGORAS, PRESIDENT & CEOPeter Grigoras, B. Eng.’s, is the founder of Romlex and its companies. Peter spent many years
in senior management in the automotive industry, spent significant amount of time in Japan involved in manufacturing, engineering and product development for Suzuki Motor Company. Peter has been directly involved in the construction and commissioning of the Toyota-Lexus program in Cambridge, Ontario, viewed by automotive experts as the “best launching” program in the automotive industry. A few years after he was contracted by Ford Motor Company and placed on an elite team to manage the plant expansion in Oakville with a budget of $1.2 billion (USD).
Peter's full time transition into commercial real estate development started shortly thereafter and he recently finished building the successful Springbank Medical Centre which has received widespread acclaim from industry experts and has been touted as one of the most visually-appealing medical buildings in the province with an exceptionally well-integrated, dynamic mix of healthcare tenants. Peter is task-oriented, a strong visionary, and possesses the ability to think unconventionally. His extensive experience in the designing, building, tenanting, and managing of medical centres has given him considerable insight on how to develop a thoroughly effective integrated healthcare model that will be of significant benefit to both the company's private stakeholders and to community healthcare providers.
OUR TEAM: BIOGRAPHIES
Denis Grigoras Barrister and Solicitor, Partner• Lawyer, In-house counsel for Romlex• Past experience as litigator for
personal and business matters• Extensive knowledge of the Canadian
and American legal systems• Currently focuses on land acquisition
and development, complex commercial contracts, risk mitigation
Brinn NormanPartner• Lawyer, specialized in corporate
securities law and litigations• Currently in a boutique firm
downtown Toronto, working with real estate development clients
• Previous experience:-major Bay Street law firm,
negotiating securities transactions, corporate finance, mergers and acquisitions
-head counsel for Canada’s largest mortgage brokerage
Dr. Hien TaMedical Consultant• Physician, VP of The Department of
Anaesthesia, MacKenzie Richmond Hill Hospital
• President of the Medical staff Association• Member of the Board of Governance
Committee.• Co-owner of Independent Health facilities
Quality Assurance Inc. (INFQA Inc.)• The company is a leading edge consulting
firm, specialized in quality assurance and compliance for medical and surgical practices, according to the CPSO, Out-of-Hospital Premises(OHP) standards, Canadian Standard Association Codes, Canadian Anaesthesia Society standards of Practice, federal and provincial environmental legislation and occupational health and safety laws.
Robert BryanConsultant, Partner in INFQA• Respiratory Therapist and
Anesthesia Assistant, MacKenzie Richmond Hill Hospital
• Member and past President of the Quality Assurance Committee for Respiratory Therapy Services
Noriko Kurokawa, Employee• Romlex’s full –time office manager,
property manager, liaison for the Asian construction materials market
Vishal Kothari, Employee• Romlex’s full-time in-house Financial
Controller, Finances and Bookkeeping
Endri PolettiArchitect, Consultant• Principal and Founder of Endri Poletti
Architects Inc., London Ontario• Architect of Record for Romlex’s future
development programs• Architect and Designer of Springbank
Medical Center in London.
PETER GRIGORAS CONSULTING LTD. –PROJECT MANAGEMENT
Toyota - Lexus RX330 Program, Cambridge and Ford Motor Company - Lincoln MKZ Program, Oakville
In 2003, Romlex (Peter Grigoras Consulting Inc.) successfully completed the major Plant Expansion Project for the new Lexus RX330 in Cambridge, Ontario. Peter has spent significant time in Japan where extended professional, cross functional management training has been completed to ensure absolute success in building the new Toyota Lexus Plant capable to produce highest quality product outside Japan. The Plant Expansion Project lasted 24 months and utilized a capital budget of $780M. It was viewed by automotive manufacturing experts as the most successful development project in the history of the automobile industry.
In 2005, Romlex (Peter Grigoras Consulting Inc.) completed the Ford Motor Company expansion program in Oakville, Ontario for the Ford Edge and Lincoln MKZ lines. Ford invested $1.2 Billion (U.S.) of capital to introduce a flexible manufacturing system in one of its production plants for the first time. This type of industrial process allows equipment to be used for more than one purpose and greatly increases efficiency. A 2004 report indicated that Ford saved approximately $2.5 Billion (U.S.) by putting flexible systems in at five manufacturing plants.
TAI/PMT Program Organizational ChartTMMC 483N Paint Shop Project
Peter GrigorasProject Manager
H. YamashitaVP-Japan
Roland Okyere
Grinnell
Russ NewtonSafety Manager
Geoff Bernardi
Daifuku
Tony Gordon
Tsubaki
Don Megdonal
TKS
Larry Walker
Eisenmann
Paul Feltman
Aecon
To be named
Rockwell
To be named
Kawasaki
TMMNABilly Millar
Safety
TMMCRandy Hanuska
Safety
Figure 1: The Toyota - Lexus RX 330 Program Organizational Chart
Mr. Grigoras Project Manager
Figure 4: Ford Motor Company - Oakville Assembly Complex Aerial View
ROMLEX – MEDICAL CENTERS: OPERATIONS
• Our preferred niche has always been to develop, construct, and manage medicalcentres. It is our passion and our forte.
• As Canadian healthcare goes through some very significant changes, it will create anexcellent niche for Medical Centres that are able to house hospital-grade procedures.Of course, there is a large shortage of capable medical centres and there is also ashortage of family physicians in Ontario.
• Therefore, the focus is on creating a cost-effective state-of-the-art facility that canhouse the tenant physicians and clinics and, afterwards, the attention immediatelyswitches to tenant-focused management of the asset to ensure that the physiciantenants are retained in the medical facility. Oftentimes, this is just as important ascreating a leading edge facility.
MEDICAL PROJECTS COMPLETED TO DATE:
Pellark Medical Centre - 240 Wharncliffe Road N., London The Pellark Medical Centre was acquired in 1998 for $2,250,000.00. At the time of
acquisition, the asset had significant vacancies and parking limitations due to the small size of the site.
As part of Romlex's capitalization strategy, it acquired two neighbouring properties that were converted into parking space and also provided attractive incentives to family physician tenants to fill the building's vacancies and to attract other physician specialists and support services. Given the landlocked asset, Romlex also implemented controlled parking and introduced a paid parking fee.
The additional acquisitions of the neighbouring houses, the demolition of those houses, the conversion into parking lots, the implementation of controlled parking, and the costs required to fill the vacancies totaled $380,000.00. However, the net operating income of this underperforming asset was significantly increased by 118% from $220,000.00 per year to $480,000.00 per year and the property was eventually sold in 2006 for $4,990,000.00.
Figure 1: Pellark Medical Centre - View Facing North West
Figure 2: Pellark Medical Centre - Property Layout Including Neighbouring Land Acquisitions
Tenants PellarkMedical Building
Practice Suite Sqft. LeaseStart Date
LeaseEnd Date
$ / Sqft. Net Monthly Rent
Dr. Cahalan Physician 100&101 2,393 Mar-04 Apr-09 $9 $1,794.75
Dr. Charlton Physician
Dr. Beleya Physician
Dr. P. Baass Physician
Cathy Paiva Physiotherapist
Medsana Pharmacy Pharmacy 102&103 1,087 Jan-07 Dec-11 $60 $5,500
Dr. Annen Physician 200 940 Jan-04 Jan-09 $9 $705
Western Walk-In Clinic Physician x 4 201 1,385 Jul-07 Jun-12 $10 $1,154.17
Vacant 202 450 - - 0 0
Judson Medicine Prof. Corp Physician 203 756 Jul-93 Jul-08 $9 $567
Dynacare Laboratory 204 450 Jul-92 Sep-07 $133.33 $5000
Dynacare Laboratory
Dr. Gillis Physician 205 800 Jan-00 Jan-10 $10 $666.67
Lasermed Rehabilitation Clinic Physician 206 1,230 Jan-05 Jan-10 $8 $820
Bhayana Medicine Prof. Corp. Physician 207 1,250 Jan-08 Dec-12 $8 $833.33
Derek Chiu Dentistry Prof. Corp. Dental 300, 301, 3,670 Jul-05 Jul-10 $12 $3,670
Dr. Dilworth Dermatology 302
Dr. Julie Clarke Physician 305 2,200 Mar-08 Feb-13 $9.5 $1,741.67
Dr. Candice McKee Physician
Dr. Karina Starok Physician
Dr. Andrea Hircheimer Physician
Dr. Awde Physician 303 1,256 Jun-02 Jun-12 $7 $732.67
Dr. Varkey Physician (pain management)
Lower 105 1,344 Aug-03 Aug—8 $7 $784
Can-Health Physio Physiotherapy
The Learning Edge Inc. Consultant Lower 104 750 Jan-08 Dec-12 0 $500
Dr. W. B. Bowler Physician Lower 101 1,500 Oct-07 Sept-12 0 $500
ANALYSIS / CAPITALIZATION PLAN
Acquisition Cost $2,250,000
Additional Capitalization Costs $380,000
Total Project Cost $2,630,000
Project Value $5,170,000
OXFORD MEDICAL CENTER- 140 OXFORD STREET, LONDON
Romlex acted as a property manager and a vested stakeholder in this previously-constructed medicalbuilding. In two years, Romlex introduced paid parking and added tenants which increased the valueof the building by 20%.
Figure 1: Oxford Medical Centre - View Facing North
ROMLEX- RECENT DEVELOPMENTS
Springbank Medical Centre - 460 Springbank Drive, London
Testimonials"Upon opening in November 2011, SPRINGBANK MEDICAL CENTRE was immediately recognized as being among the top-tier medical buildings developed in Ontario and major markets across Canada. The investment characteristics of this property earned the distinction with a 'best-in-class' market ranking that is expected to be maintained and enhanced in the years ahead. Through my experience of valuing 400+ medical office buildings over the past two decades, it is easily apparent that Romlex International has established a new standard of development excellence to which other future medical building developments will be compared and prospective tenants will demand."- Ross Cannata, AACI, P.App., Principal of Ross Cannata & Associates Inc.
62,000 sqft. Building, 75% preleased by the time of construction in July 2010 Fully occupied with 12 physicians waitlisted at the time of opening in November 2011 Highly diversified tenant mix, paid parking, underground parking stalls for tenants Sold to Canada's largest Healthcare REIT during development Viewed by healthcare specialists as the "best built" medical centre in south western Ontario in the past twenty years
Figure 1: Springbank Medical Centre - Front View
Figure 2: Springbank Medical Centre Project Renderings - Front View and Back View
Figure 3: Springbank Medical Centre - 3rd Floor Common Waiting Room
Figure 5: Springbank Medical Centre - Lobby
Figure 4: Springbank Medical Centre - LobbyFigure 6: Springbank Medical Centre - Hallway
Figure 7: Springbank Medical Centre - Waiting Room
"Mayor Joe Fontana was given the honor of cutting the ribbon at the official opening of the London Chronic Pain Institute on Monday (Feb. 25). This community-based chronic pain treatment clinic is the first of its kind west of Toronto." by Mike Maloney, London Community News.
Figure 8: Springbank Medical Centre - Opening of the London Chronic Pain Institute with Mayor Joe Fontana
Analysis/Capitalization PlanCAP Rate: 6.5%Annual Income from Rents: ………………………………………..$1,257,623.00Annual Income from Paid Parking (use 5 turns): …………. $720,000.00Land Acquisition Cost $1,200,000.00Development and Construction Costs $15,500,000.00Total Annual Revenue from Rents and Paid Parking $1,777,623.00Total Development Value (at 6.5% CAP rate) …………………………………………………………………….…..$30,425,300.00
ATLAS CITY DEVELOPMENTS LTD.New Developments in the GTA (under Atlas Healthcare’s umbrella)As we move into the New Year (2014), into a new geographical setting (the GTA), and into a new
development model (collaborative, integrated, community-based mini-hospitals), we are rebranding ourselves and teaming up with capable financial partners who appreciate the opportunities available in private medical real estate in the context of Ontario's dynamically changing population and the change in our province's health care governance.
We have created a parent company, Atlas City Developments Ltd., which shall be involved in all of our new developments. Our investors will be not only being investing in our collective talents; they will be investing in the future of health care delivery.
The New Development Model - Community-Based Mini HospitalsThe proposed developments are community base mini-hospitals containing general practitioners,
specialists, various clinics, and a surgical floor for day surgeries. The design will allow for mutually beneficial clinical relationships and communication that ensures patients experience a continuity of care as they navigate the different health professionals responsible for their care all within a single facility. Each floor is strategically grouped by related and interdisciplinary health care service providers and the integrated IT allows for instant communication and collaboration between the various specialists and diagnostic clinics.
Why Develop in the Greater Toronto Area?Toronto is one of the fastest growing cities in the world (aver. 1.8%). Its population growth exceeds
that of major cities such as New York, Paris, Hong Kong, and London.
The Future of Health Care in Ontario
Healthcare in Ontario is changing. In 2012-13, health care consumed 42 cents of every tax dollar and, without a change of course, health
spending would consume 70 percent of the provincial budget within 12 years. As Ontario’s population grows and ages, there will be an unprecedented level of demand for health care and services.
Ontario’s Minister of Health and Long-Term Care, Deb Matthews, says that changes are needed to cope with an aging population and massive deficit. As part of these changes, the Ontario government plans to offer more surgeries in stand-alone clinics and to tie funding to individual patients, not hospitals.
In 2012, the Ontario government commissioned economist Don Drummond to report on how the government could reduce its deficit; this lead to the “Drummond Report” and Section 5 of that report dealt with the particularly important subject matter of health care. The recommendations from the Drummond Report include (i) creating policies to move people away from inpatient acute care settings (i.e. hospital emergency rooms) and towards community care (i.e. urgent care clinics and Family Health Teams), and (ii) reducing the sole proprietorship nature of the offices of many primary care physicians and encouraging more interdisciplinary integration through performance incentives and accountability.
The Drummond Report
Recommendation 5-52: Create policies to move people away from inpatient acute care settings by shifting access to the health care system away from emergency rooms and towards community care (i.e., walk-in clinics and Family Health Teams)
Recommendation 5-53: Encourage hospitals to specialize so all are not trying to provide all services regardless of their comparative advantages. To a degree, proper funding incentives will energize this shift; if a certain reimbursement rate is set for an activity, hospitals that cannot provide the service within that rate will gravitate away from it. More specialty clinics should also be encouraged, because they can cost less and provide better quality.
Recommendation 5-58: Reduce the sole proprietorship nature of the offices of many primary care physicians and encourage more interdisciplinary integration through performance incentives and accountability.
Recommendation 5-63: Require Family Health Teams (FHTs) to accept patients who choose them and the FHTs should work with each patient to connect them with the most appropriate constellation of care providers.
Q: Why focus on building Collaborative “Community” Surgical Centres?
R: Experts say Ontario hospitals are dangerously overloaded
By Jonathan Sheer, the London Free Press
Tuesday, February 4, 2014 11:55:41 EST PM
-While many countries keep hospital bed capacity at 85% or less to manage surges in demand, some Ontario hospitals are operating near or above 100% — a jam that risks patient care and backups emergency departments.
“You have to have some empty beds to efficiently and safely manage patient flow,” said Dr. James Worthington, a senior vice-president at Ottawa’s civic and general hospitals, which Tuesday were operating at 109% capacity.
“The present system is overly stressed and that increases the risk of adverse events,” he said.
Ottawa isn’t alone in its crunch: University and Victoria hospitals in London averaged 104% and 102% capacity from April to December last year.-
-Ontario has 2.4 hospital beds for every 1,000 residents, less than half the European average. Of 39 countries compared by theOrganization for Economic Co-operation and Development, only three had fewer hospital beds than Ontario — Mexico, India and Indonesia.
-Health Minister Deb Matthews wouldn’t say if more beds are needed.
Instead, Matthews said she’s focused on freeing capacity in hospitals by shifting care to the community. Those efforts have freed up beds and continuing to do so, she said.
-Sinha isn’t convinced the jam in all hospitals is the result of too few beds — some hospitals have been slow to adopt best practices to free up beds faster, he said.
Market forces can benefit patients, health economist warns
By Jonathan Sheer, the London Free Press
Sunday, January 19, 2014 9:40:47 EST PM
Writing for the Macdonald-Laurier Institute, a public policy think tank, the University of Toronto’s Audrey Laporte steps on a third rail for Canadian Politicians who talk of health care as a national icon.
She argues Canada should look to Europe and Australia, and at home, at dentistry, to see how market forces benefit patients. It begins with having patients pay for a share of their care. “You have to have some skin in the game,” Laporte said.
Governments should set minimum standards but allow the private sector to set prices and services. “They are the individuals with the greatest incentive for getting it right,” Laporte said.
REFORM ELEMENTS: As Laporte sees them
Patients Pay for care above a base covered by insurance. Insurance for catastrophic costs; tax credits to offset costs for the low-
incomePrivate insurance Privately provided, with minimum core set by government Bought like car insurance, not through work; coverage not affected by
job change Premium charged for acute coverage and a second amount to offset
future increases for chronic conditionsMarket pricing Set by providers, not government Require insurers to cover a bit more than the actual cost of care. Anything beyond paid out-of-pocket by users. Providers compete on price. Remove barriers to enter marketplace to ensure competition
Government as referee
1. Insures quality through inspections/public reporting2. Provides care in rural/remote areas to ensure standards met3. Makes sure teaching hospitals fulfill educating roles
Private sector Provides insurance Private hospitals/clinics decide how to set up their practices and
compete with public ones.
HEALTH CARE SPENDING IN CANADA
$211 billion: Total estimate, 2013$48.8 billion: Budgeted by Ontario this year$6,000: Average per Canadian70%: Ratio of total paid by governments30%: Ratio privately paid, by insurance and patients
Source: Canadian Institute for Health Information; Ontario budget
Important report:Recommend to read “Future Healthcare” by MACDONALD –LAURIER INSTITUTEHow Markets Can Put Patients First. Economics before Politics in Canadian Health Care DeliveryAudrey Laporte, JANUARY, 2014(REPORT ATTACHED)
Our Approach
One of Canada’s leading medical building appraisers recently said that “today, the demand for quality medical buildings exceeds the available supply.” With very few quality medical buildings available, an increasing and ageing population, and a government focus on community-based, integrated health care delivery, we are here to develop a program that constructs a world-class real estate asset that integrates the best available medical practices with the newest technologies to create a truly innovative model of care that operates efficiently and enriches the health and well-being of our diverse community. Our long-term strategy is to replicate and develop our community-based, integrated mini-hospital model throughout various communities and hold and manage each asset with a view to creating a private Real Estate Investment Trust.
The First Proposed Development - Richmond Hill (Socio-Economic Study for the Town of Richmond Hill)
(Report attached)
The proposed development is in Richmond Hill, Ontario. Located just 4km north of the Toronto city limit, Richmond Hill is part of the York Region and the proposed development services a catchment area of approximately one million people. Over the next 30 years, York Region will see the largest increase in population within the Greater Toronto Area allowing the proposed development to be particularly well situated. The anticipated building is an 115,745 sqft, 6-storey structure located on a 5.59-acre parcel of land on the northeast corner of Leslie St. and 16th Ave., close to the HWY-404 interchange with excellent traffic access. The site’s location is land-locked which makes it conducive for controlled parking and it is situated directly between a residential area and high-end commercial offices. There is significant future development in the neighboring area consisting of commercial office, retail, and industrial complexes. The property itself is zoned MC-1 which allows for the building of medical offices
Property Address 20 Brodie Drive, Richmond Hill, ON
Site Area 5.59 acres
Zoning High performance commercial including medical offices
Due Diligence August 30, 2013
Catchment Richmond Hill, Vaughan, Markham, Other York Regions, Toronto
Land
- Cost: $7,546,500- Conducive for Parking Control - Excellent traffic access- Close to residential and high end commercial offices- Already zoned for medical use
Feasibility Study
Preliminary feedback - Excellent location
Figure 2: Richmond Hill Medical Centre - Rendering - Front View from Leslie Str.
Key Individuals Involved
Romlex International Ltd. now Atlas City Developments Ltd.
Denis and Brinn Holdings Inc.
Avery Consulting Group Inc.
Kevin Kirkpatrick (physician and human resources recruitment specialist)
Independent Health Facilities Quality Assurance Inc. (IHFQA Inc.)
Dr. Hien Ta, MD, CCFP, FCFP, FRCPC (Anesthesia)
Robert Bryan, RRT, AA, EMCA
Associate Consultants: Fire Marshall (fire and life safety)
Mandate of IHFQA (www.iffhq.ca):
"Ensuring that medical and surgical facilities' operations employ a quality assurance program that complies with the current regulations and guidelines from the CPSO regarding OHP standards."
IHFQA Inc. Experience
Chronic pain centres, endoscopy centres oral surgery operating rooms for dentists, plastic surgery centres, etc.
FLOOR LAYOUT
1st Floor (Main Floor) - 24,500 sqft. Floor plate
• Radiology Clinic (X-Ray, Ultrasound, Mammogram, CT, MRI)
• Ophthalmology/Optometry Clinic with front exposure
• Urgent Care Clinic• Pharmacy and Home Health Care• Rehabilitation/Assessment Centre• Dental Clinic ( Including 2 OR rooms
at second floor)• Dermatology Clinic (5 dermatology
doctors)• Laboratory
2nd Floor - 28,415 sqft. floor plate (surgery floor)
• Endoscopy/Gastroenterology• Plastic Surgery Centre (office only)• Orthopedic Surgery• OR & OP Plastic Surgery, Oral
Surgery• ENT, Gynecology, Urology• Recovery Rooms• Overnight Stay Rooms
3rd Floor - 16,000 sqft. floor plateAudiology
• Ear Nose Throat• Chronic Pain Clinic & Rheumatology• Anesthesiology• Neurology, PM&R, and EMG• Endocrinology• Cardiology Clinic (Office Cardiogram,
ECHO, Stress Test)• Group Counselling, Psychology,
Psychiatry
4th Floor - 16,000 sqft. floor plate
• 18 Family Physicians• Board Room/Training Facility• Doctor's Lounge Room
5th Floor - 16,000 sqft. floor plate
• Travel Clinic• 15 Family Physicians• Oxygen-Home Therapy/Sleep Apnea• Geriatric Program
6th Floor - 16,000 sqft. floor plate
• Fertility Clinic• Prenatal Centre• Pediatric Clinic• Gynecology• Women's Health• Prostate Centre
Figure 7: Richmond Hill Medical Centre - Floor Plan (1st Floor)
Figure 8: Richmond Hill Medical Centre - Floor Plan (2nd Floor)
Figure 9: Richmond Hill Medical Centre - Floor Plan (3nd Floor)
Figure 10: Richmond Hill Medical Centre - Floor Plan (4th Floor)
Figure 11: Richmond Hill Medical Centre - Floor Plan (5th Floor)
Figure 12: Richmond Hill Medical Centre - Floor Plan (6th Floor)
Atlas Healthcare “Richmond Hill”472 Springbank Dr., London, Ontario, N6J 1G8Ph.: 519 4350010 Fax: 519435 0040Richmond Hill Medical CenterMinihospital. Cost to complete
Disclaimer
The information presented herein is for general information purposes only and does not constitute an offer to buy or sell securities.
The information presented herein is specifically directed to institutional and accredited investors (as defined in NI 45-106) and more information can be found in Romlex's subscription agreement.
Investors should review the subscription agreement carefully and/or consult with their investment advisor to assess whether this investment is appropriate for their needs and circumstances.
ATLAS HEALTHCARE (LONDON) LTD.This project has been in the planning stages and is scheduled to be completed by
November 2017. A significant number of physicians and support services have expressed interest regarding this future development; furthermore, a number of specialty clinics from the hospital are interested in relocating to this site and operating within a community-based, fully-integrated collaborative healthcare facility.
The site will accommodate a 45,000 sqft. Structure and will have a similar design to the neighboring Springbank Medical Centre which was recently completed in 2011. The development is funded by National Bank.
Land currently owned by the Developer.
Development in process
Figure 1: Atlas Healthcare (London) Rendering – Various
Analysis
CAP Rate: 6.5%
Land Acquisition Cost ...................................................................................................................$1, 400,000.00
Development and Construction Costs ..........................................................................................$11,200,000.00
Expected Annual Revenue ...........................................................................................................$1, 877,000.00
Total Development Value (at 6.5% CAP rate) .............................................................................$28,870,000.00
NIXON MEDICAL CENTRE - 510, 518, 526 SOUTHDALE ROAD EAST, LONDON: IN DEVELOPMENT PROCESS:
This development is currently in construction and scheduled for completion in June 2015. The particular centre is a proposed 22,000 sqft. building located in south London amongst a demographic containing many young and middle-aged families with children (although the centre itself will attract patients from throughout the entire city).
This medical centre is particularly unique as it is primarily a pediatric oriented facility containing support services that focus on pediatric clinic needs. It is the only such pediatric clinic in the city and it is an absolute success because it is already 100% committed and 60% pre-leased. The development is funded by National Bank.
Figure 1: Nixon Medical Centre Rendering - West View
Figure 2: Nixon Medical Centre Rendering - East View
Figure 3: Nixon Medical Centre - Development Gantt Chart
Figure 4: Nixon Medical Centre - Rent Roll and Projected Equity Calculation
Analysis/Capitalization Plan
CAP Rate: 6%
Acquisition, Construction, and Development Costs .....................................................................$5,150,000.00
Total Annual Revenue from Rents ................................................................................................$412,200.00
Total Annual Revenue from Paid Parking .....................................................................................$211,000.00
ROMLEX OTHER ASSETS –DEVELOPMENTS Romlex - Residential Real Estate Capital Assets
1057 & 1061 Richmond Street, London
These adjacent parcels are situated in the City's prestigious "Old North" area in one of themost desirable locations due to the neighborhood’s many heritage homes, tree linedstreets, and proximate location to The University of Western Ontario and downtownLondon.
The plan is to covert the beautiful former Robinson Memorial United Church intocondominium units. The former church has interior usable space totalling 18,000sqft. and is easily convertible to high-end residential suites. The project was recentlyapproved for residential redevelopment for a total of nine condominium units withthree bedrooms per unit plus a den, library, family room, and living room for eachsuite. Individual suites average 2,000 sqft. and the development is particularlyappealing to professionals within the area as both the university and St. Joseph'sHospital are within short walking distance.
Figure 1: Robinson Memorial United Church
Figure 3: Southern View of Property
Figure 2: Aerial View of Church and Adjacent House
Figure 4: Property Details
Figure 5: Floor Plan - First Floor
Figure 6: Floor Plan - Second Floor
Analysis / Capitalization Plan
Total Condominium Units Approved: 9 total (3 bedr ooms per unit)
Average Suite Size: 2,500 sqft .
Acquisition Cost ................................ ................................ ................................ ........................... $950,000.00
Devel opment & Construction Cost ................................ ................................ ............................... $1,1 00,000.00
Total Costs, Everything Included ................................ ................................ .............................. $2, 050,000.00
Average Sellout Price per Unit ................................ ................................ ................................ ..... $450,000.00
Total Value (9 units at $4 50,000.00 ea ch) ................................ ................................ .................... $4, 050,000.00
FINANCED BY NATIONAL BANK
ROMLEX - INDUSTRIAL REAL ESTATE CAPITAL ASSETS
2004 Hamilton Road, London• This 125-acre parcel of land is zoned for light industrial/commercial use and is
strategically situated along a main arterial route and less than two minutes away from a major interchange with HWY-401.
• The land forms part of the City's mega-expansion project of the HWY-401 corridor and is the only remaining site that has access to municipal services and that is available for industrial development.
• Through initial environmental reviews of the site, we have determined that approximately one-third (i.e. 47 acres) is developable.
• The remaining portion of the site also has development potential; however, it would require a notable site-specific use supported by a further environmental and planning review.
Figure 2: Hamilton Rd. Development - Property Details
Analysis / Capitalization Plan
Current Appraisal: $2,750,000.00
Development Size: Commercial Block totaling 150,000 sqft. and Industrial Block totaling 200,000 sqft.
Development and Construction Costs: 150,000 sqft. commercial block for $80.00/sqft. ($12M) and 200,000 sqft. industrial block for $90.00/sqft. ($18M)
Anticipated Annual Revenue: $8.00/sqft. for commercial block ($1.2M) and $10.00/sqft. for industrial block ($2.0M)
CAP Rate: 7%
Development and Construction Costs ..........................................................................................$30,000,000.00
Total Annual Revenue from both Commercial and Industrial .......................................................$3,200,000.00
Total Development Value (at 7% CAP rate) ................................................................................$45,714,285.71
ROMLEX - COMMERCIAL REAL ESTATE CAPITAL ASSETSWestern Square Plaza - 275 Wharncliffe Road North, London
• This plaza was a former car dealership that underwent significant reconstruction to transform it into one of the busiest commercial plazas in the City. The plaza houses several AAA commercial tenants and, located at a major, heavily-populated intersection near the University of Western Ontario, the plaza attracts student clients and other professionals from the adjacent commercial and medical offices.
Figure 1: Western Square Plaza - Google Maps Street View. Some of the tenants include Starbucks, Subway, and Papa John's Pizza
Figure 2: Western Square Plaza - Google Maps Street View - Facing North East
• The university is home to over 35,000 students and there are no similar developments that provide a large variety of food services within the boundaries of the university campus.
• The plaza's heavy use and aesthetic appeal make it a home-run development
Analysis / Capitalization Plan
Current Appraisal: $4,200,000.00
CAP Rate: 6.25%
Acquisition, Development, and Construction Costs ................................ ................................ ..... $1, 900,000.00
Total Annual Revenue from Tenants ................................ ................................ ............................ $270,000.00
Total Development Value (at 6.5% CAP rate) ................................ ................................ ............. $4, 220,00.00
FULLY OPERATIONAL
7095 TECUMSEH ROAD EAST, WINDSOR
This development land houses the Bank of Montreal as the anchor tenant in a stand-alonebuilding which has currently been redone with Arriscraft Stone on the exterior; this gives thebuilding a clean and pristine look.
The Bank of Montreal building, which is 5,900 sqft, is situated on 1.4 acres, and contains a drive-through and ample parking. The adjacent lands (8025 & 8051 Tecumseh Rd. E.) are alsoowned by Romlex and are zoned medical/commercial and development has started on a newmedical building on the adjacent site.
Being situated in a heavy residential area benefits both the bank and the future medicaldevelopment tremendously from the high volume of traffic, the excellent exposure, andsuitable access to this corner lot.
Analysis
CAP Rate: 6.0%Land Acquisition Cost $640,000.00Development and Construction Costs $1,500,000.00Expected Annual Revenue $275,000.00
Total Development Value (at 6.5% CAP rate) $4,230,000.00
Project Funded by Bank of MontrealThe Bank of Montreal Building leased by the bank has an NOI $133,000.00Appraised Value at 1,900,000.00
Total Value of the Plaza $6,130,000.00
ROMLEX - RETAIL : REAL ESTATE CAPITAL ASSETS
Springbank Garden Centre - 462 Springbank Drive, London
The Springbank Garden Centre was purchased due to its strategic location adjacent to the recently developed Springbank Medical Centre. The garden centre is a retail outlet owned and operated by Romlex and carries a wide selection of plants and gardening supplies to decorate the home and garden.
The Springbank Garden Centre has a long history. It first opened in the early 1960's (then called "The Little Tree Farm") and operated as Canada's first year-round garden centre.
The property was acquired for $800,000.00 and averages annual sales of approximately $650,000.00. The site is ideal for future medical development as it's land locked and Romlex owns the neighbouring land.
Figure 1: The Springbank Garden Centre
