Healthcare Realty Investments
FOCUSED Healthcare ReaLTY Investment Platform
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Ggp & CO is leveraging its platform, Ggp & CO Healthcare Realty (“SHR”), to take advantage of favorable long-term secular trends to build a successful portfolio of healthcare real estate assets. Our current portfolio contains over $50 million in assets across multiple classes of healthcare realty. We are actively seeking to make acquisitions from $5 million to $200 million in size to supplement the existing portfolio.  Ggp & CO is also looking to partner with veterinary hospital operators on new site builds. Please reach out to us with any potential business combinations.

Investment Thesis

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SHR is looking to capitalize on current market conditions and a variety of long-term factors, including historical high yield performance compared to other real estate asset classes, stifled compensation, advantageous demographics, positive impact of emerging trends in a still highly fragmented industry.

GEOGRAPHY

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Fragmented industry

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DEMOGRAPHIC Trends

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SPONSOR RESULTS
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areas of interest
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We are interested in exploring properties in the following asset classes.

veterinary Clinics

Veterinary Clinics

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Veterinary Hospitals

Veterinary Hospitals

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WHY WORK WITH Ggp & CO?
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Since its inception in 2002, Ggp& CO has completed eighty transactions totaling $1.8+ billion of aggregate transaction volume.  Over half of the firm’s transactions have been platform acquisitions, financings, or add-on’s for Ggp& CO’s Principals’ buyout control investment vehicles.

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The SHR pipeline was developed over the past year and includes a diversification across geographic areas around the United States. We have operating control of several Midwest properties, long-standing banking relationships, and near-term transaction opportunities into several portfolios in the South and Southeast.

Our portfolio will be extremely diversified in deal size.  We expect to transact on single properties as low as $3 million or less, mid-sized deals ranging from $10 million to $100 million, and in special cases, we will consider the purchase of large portfolios with dozens of properties where the transaction size could be over $500 million.

Highly fragmented universe of veterinary hospitals presents consolidation opportunity for operators of scale

• 90%+ of the 28,000 veterinary hospitals in the U.S. are independently owned
• Veterinary services is in the early stages of consolidation
• Consolidator ownership expected to nearly double by 2025P
• Consolidation trends accelerating
1) given aging of veterinarians
2) a growing preference among graduating veterinarians to work for a veterinary services platform
3) decreasing interest in new grads starting their own practice or acquiring an existing hospital

Increasing Pet Lifespans Driving Higher Need for Care:

• Advanced treatments and usage of preventative care has lengthened pet life expectancy
• Aging pet population requires more costly and frequent care, driving overall growth in veterinary services
• Geriatric pets typically demand more sophisticated procedures and specialty services, such as surgery and diagnostics
• As pets age, yearly maintenance and ownership costs escalate due to increased visit frequency
and the need for special diets and medication
• Senior cats and dogs cost an average of 25% and 50% more, respectively, on an annual basis

 Our property distribution will span existing Veterinary Hospitals and stand-alone Veterinary Clinics. SHR will also partner with existing Veterinary Hospital or Clinic operators who are seeking to grow their practices with de-novo facilities.

Primary senior care centers are growing rapidly as we shift from fee-for-service to value-based care

We estimate that the core addressable market for primary senior care centers is approximately 27 million Medicare
eligibles in the target demographic. We believe this market represents approximately $325 billion of annual healthcare spend. As of
2018, there were approximately 60 million Medicare beneficiaries in the United States, with an additional 10,000 individuals
reaching the age of eligibility every day.

While traditional healthcare facilities are often located in medical office buildings that are removed from where patients
spend a majority of their time, dominant players like Oak Street Health, One Medical, Cano Health, and CareMax target locations
in highly accessible, convenient locations close to where our patients live. The average center has a capacity of ~3,500 patients
but could increase through supplemental use of technology.

These companies provide wraparound care to older adults, we foresee more opportunities for senior living providers that are
seeking ways to bolster their health care offerings in light of Covid-19. We expect both partnership and roll-up strategies
with senior living organizations to expand rapidly

The veterinary services industry benefits from strong fundamentals, consistent growth, recession-resilient characteristics
and no reimbursement risk. The market reaches $36 billion with attractive secular fundamentals. In addition this industry has
demonstrated consistent historical and projected growth with recession-resilient tendencies driven by inelastic demand.

In veterinary care, diverse cash-pay customers results in no reimbursement risk and a short cash conversion cycle. For investors,
the fragmented industry creates compelling growth and consolidation opportunities for platforms of scale.