In August 2020, Providence Health Care was reported to raise nearly $ 1 billion for the property at the 6.6-acre Burrard site in the West End.
Concord Pacific Group bought the St. Paul Hospital site for $ 850 million, according to a report from the province’s auditor general this week.
The report, which looked at provincial public sector finances, included some interesting insights into the terms of one of the largest and most complex recent commercial real estate deals.
It was reported in August 2020 that Providence Health Care would raise nearly $ 1 billion for the property at the 6.6-acre Burrard site in the West End while working to build a new $ 2.2 billion hospital in False Creek Flats.
At the time, Concord Vice President Peter Webb said the current zoning allows for approximately 1.9 million square feet of residential density and commercial development. Concord is widely expected to rebuild the site into tall residential towers to justify the cost of the land. He has said that he will work with MST Development Corp., which is the First Nations development firm Musqueam, Squamish and Tsleil-Waututh.
Providence, which operates the hospital, said the money will go toward building the new St. Paul’s and other facilities at the Jim Pattison Medical Center, which is expected to open in 2026 next to the Via Rail station.
The St. Paul’s Foundation is raising $ 125 million for the new hospital, while the provincial government is contributing $ 1,158 million. The rest of the money will come mainly from the sale of the old hospital.
Auditor General Michael Pickup said in his office’s public accounts audit that the sale, through a purchase right agreement, was closed on July 31, 2020 and title will transfer seven years later, on July 31, 2027. The report says that $ 125 million has been paid and that the outstanding amount of $ 725 million owed as of March 31, 2021 should be recorded as a loan receivable, discounted as appropriate.
The report recommends that “sales proceeds received to date (and as of July 31, 2027) be deferred until construction of the new St. Paul’s is completed.
The report said the former hospital is currently operating on the site under a sale-and-lease-back agreement.
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