AN OPPORTUNITY FOR ALTERNATIVE REAL ESTATE INVESTMENT

Arch markets innovative investment products to institutional and family office investors looking to diversify their portfolios. We make the Arch Senior Care Co-Ownership Fund available to qualified clients looking for long-term growth potential.

OUR APPROACH

Arch taps into investment opportunities that emerge from the convergence of public and private real estate assets. Its network of relationships, industry expertise, and intense knowledge of private real estate and infrastructure give Arch an edge over similar players in the market.

Arch’s investors have access to opportunities that would otherwise be difficult to source. They also benefit from a clear alignment of interests, as Arch invests its proprietary equity alongside the capital of its investors.

Investment opportunities that complement investor portfolios by focusing on otherwise-untapped sections of the real estate market: it’s the Arch way.

ARCH SENIOR CARE CO-OWNERSHIP FUND SUMMARY

LAUNCHED September 2017

MANDATE Make appropriate investments in, and develop, senior-care facilities solely focussed in the province of Ontario, to meet the growing demands of an aging population.

SPONSOR Arch Corporation

TARGET Acquire approximately 850-1,000 government-funded LTC beds

EQUITY $100M including $10M from Arch Corporation

STATUS

Initial closing – Completed Q4 2017 with $44M committed, including:

  • $15M from one of the largest independent family-owned multinationals in the GCC;
  • $7.5M from a Canadian UHNW family office; and
  • $10M from the fund sponsor, Arch Corporation.

Strategy execution: as at January 15, 2018: 256 LTC beds under contract, with a further 400+ LTC beds under negotiation.

THE OPPORTUNITY

  • The purpose of Arch Senior Care co-ownership opportunity is to make appropriate investments in, and develop, both long-term care/nursing and retirement homes solely focused in the Province of Ontario, to meet the growing demands of an aging population.
  • The Arch Senior Care co-ownership fund is a direct-investment opportunity to develop long-term care/nursing homes and private-pay retirement facilities. The Ontario government has embarked on an aggressive redevelopment of 30,000 beds over the next 8 years, in which Arch intends to participate.
  • The Sponsors anticipate a robust pipeline of motivated sellers, whose assets require capital investment to maintain government funding post-2025.
  • The revenue mix of these capital-deprived locations is suboptimal and will be optimized by Arch Corporation during the redevelopment of the long-term care homes; one of several programs to drive strong fund returns.
FUND OBJECTIVES To generate stable long-term cash returns in the senior-care sector.

NATURE AND SCOPE The Fund will be solely focused on the province of Ontario.

CAPITAL COMMITMENTS The Fund will be structured to permit a direct investment by the Fund via an overseas entity that will invest in Canada through a Canadian structure

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