It had been reported in August 2020 that Providence Health Care would receive nearly $ 1 billion for the property on the 6.6-acre plot on Burrard in the West End.
Concord Pacific Group acquired St. Paul’s Hospital for $ 850 million, according to a report by the county’s auditor general this week.
The report, which looked at the finances of the public sector in the province, contained some interesting insights into the terms of one of the largest and more complex newer commercial real estate transactions.
It had been reported in August 2020 that Providence Health Care would receive nearly $ 1 billion for the property on the 6.6-acre site at Burrard in the West End while it worked on building a new $ 2.2 billion hospital in False Creek Flats .
At the time, Concord Vice President Peter Webb said the current zoning allows for about 1.9 million square feet of residential density and commercial development. It is widely expected that Concord will convert the site into tall residential towers to justify the price of the land. It has said it will work with MST Development Corp., which is the development firm for Musqueam, Squamish and Tsleil-Waututh First Nations.
Providence, which operates the hospital, said the money will be used for the construction of the new St. Paul’s and other facilities at Jim Pattison Medical Center, which is expected to open in 2026 next to Via Rail station.
St. The Paul’s Foundation is raising $ 125 million for the new hospital, while the provincial government is contributing $ 1.158 billion. The rest of the money comes mainly from the sale of the old hospital plot.
Auditor General Michael Pickup said in his office’s audit of government accounts that the sale, in the form of a purchase agreement, closed on July 31, 2020, and ownership will be transferred seven years later on July 31, 2027. The report said that $ 125 million has been paid and that the outstanding amount of $ 725 million due on March 31, 2021 was to be recorded as a loan receivable, discounted as needed.
The report recommends that “the sales proceeds received to date (and on the expected date July 31, 2027) be deferred until the completion of construction of the new St. Paul’s.
The report said the old hospital is currently operating on site under a sale-leaseback agreement.