VGH and UBC Hospital foundation buy property for $100M

The VGH and UBC Hospital Foundation's $100 million purchase of a prime block of land on Vancouver's west side is a way of raising funds for a non-profit cause, even though the major real estate move makes sense for other reasons, according to its president and CEO.

VGH and UBC Hospital Foundation, which is the main fundraising partner for Vancouver Coastal Health, had been investing the money from its donors, millions of dollars, into market funds.

But for some years, its board of directors, which has included real estate and investment professionals from firms such as Westbank, Peterson Group, Odlum Brown Ltd., CBRE Group, Larco Investments and Rize Alliance Properties, has tapped into Vancouver land and property, especially as charities across the country face more uncertainty about how to maintain past levels of donations.

“We thought, doesn't this make more sense? Let's take the dollars that are donated, invest them in our own real estate that then has a double impact,” said Foundation president and CEO Angela Chapman.

The foundation in March finished a deal to buy a 1.4 acre (0.5 hectares) property at the 900 block of West 12th Avenue, next to VGH's campus.

The site includes Windermere, a 14-storey long-term care facility with 207 beds, and a rental apartment building.

The foundation will get income from leasing Windermere to Vancouver Coastal Health, which will operate it as a fully public care facility. All its 207 long-term care beds will continue to stay in a location close to VGH.

There are no current plans to redevelop the apartment building, but Chapman said the potential exists in coming years for plans that get much more allowance for density since the location is so close to the Broadway Corridor.