Mohawk Medical Growth Partners, a Canadian private equity firm specializing in healthcare real estate, has raised $2.59 million in a private placement. The transaction, which was facilitated by investment banking firm Cranson Capital Securities, will support Mohawk’s acquisition of a Vaughan, Ontario-based medical facility called the Columbus Medical Arts Building. Since its establishment in late 2012, Mohawk has acquired four medical buildings, including Columbus.
Cranson Capital Securities Announces Closing of $2.59 Million for Mohawk Medical Growth Partners
TORONTO, July 29, 2014 /CNW/ – Cranson Capital Securities Inc. (“Cranson Capital”) is pleased to announce that it has completed a $2.59 million private placement for Mohawk Medical Growth Partners (“Mohawk”), a private real estate investment firm focused on acquiring, developing and managing medical office buildings across Canada, for their acquisition of a medical facility called the Columbus Medical Arts Building (“Columbus”) in Vaughan, Ontario.
Mohawk’s management team previously founded GT Canada Medical Properties REIT (“GT”), the first publicly traded medical office building company in Canada, which consisted of a portfolio of 12 medical buildings. GT was one of the fastest growing REITs in Canada before a larger REIT acquired it for $87.3M. Subsequently, the same team founded Mohawk as a private investment firm. Since commencing in Q4-2012, Mohawk has acquired 3 medical buildings with Columbus being the fourth.
This acquisition gives accredited investors a great opportunity to partner in a niche real estate asset class with very stable cash flow and the proven track record of Mohawk’s experienced management team. Mohawk’s investments are tax efficient, pay a strong monthly yield and appreciate over time.
The property is in an excellent urban location in the heart of the city of Vaughan, a rapidly growing market with a subway line extension anticipated to finish in 2016 and a new hospital to be completed in 2019. This growth will create an increase in the requirement of easily accessible and well maintained medical office buildings.
“Due to universal healthcare in Canada, medical office buildings are a compelling investment by the virtue of the stability of physicians as tenants, who earn from the government and experience high demand for their services” said Devon Cranson, President at Cranson Capital Securities, “We encourage our investors to take full advantage of deals that have the stability of this asset class and also demonstrate a clear upside with an experienced management teams that can execute,” he added.
Twenty-three of Cranson Capital’s accredited investor clients recognized the opportunity to participate in this transaction totaling $2,590,000. Cranson Capital looks forward to building a long term relationship with Mohawk as they grow their private real estate investment firm.
About Mohawk Medical Growth Partners
Mohawk Medical Growth Partners is a Toronto based private equity firm specialized in healthcare real estate and committed to exceptional returns through reasonable risks. Sean Nakamoto and Andrew Shapack, whose combined track record includes 64 medical office building acquisitions, formed Mohawk in September 2012. The firm engages in acquisition, property management and asset management of Canadian medical office buildings financed through syndication to LP investors. Mohawk achieves its objectives through an aggressive, ambitious and disciplined acquisition program aimed at creating a geographically diversified portfolio of high quality properties that will generate stable distribution yields and capital appreciation opportunities. For more information visit: www.mohawkmedical.ca
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small to medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support our investors and entrepreneurs. Cranson Capital Securities is registered with the Ontario Securities Commission as an Exempt
Market Dealer and specializes in raising capital from accredited investors for private placements in real estate developments, technology start-ups and high growth companies. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for our entrepreneurs. For more information visit: www.cransoncapital.com.
SOURCE Cranson Capital
Photo courtesy of Cranson Capital