CenterSquare Investment Management (CenterSquare), a global real assets manager, has made a USD35 million equity investment in Flagship Healthcare Trust (Flagship), a Southeastern and Mid-Atlantic focused medical office private REIT with over two million square feet of office space and 75 properties.
CenterSquare made the investment as part of its Strategic Capital platform on behalf of a Fortune 100 institutional client pension plan. The equity investment will support the robust acquisition and development pipeline of the company’s growing portfolio.
“The medical office real estate sector is enjoying both favourable secular and cyclical tailwinds as an aging population is increasingly seeking convenient locations to access quality healthcare,” says Chad Burkhardt, Managing Director of CenterSquare. “Nowhere is that more pronounced than in the Southeast US market where Flagship’s leadership team leverages their strong relationships with physicians and health care systems and deep sector knowledge to consistently execute on their strategic growth plan. We believe the runway is long and the future bright for their value proposition.”
Demand for medical office is expected to increase in the coming decade as the US population continues to age and migrate to the Southeast and Southern Mid-Atlantic region of the country. This combination of factors creates substantial opportunistic synergies for Flagship, which recently announced acquisitions in Davenport, FL, Lexington, KY, and Wilmington, NC.
“We are excited to welcome CenterSquare as a strategic investor in Flagship,” says J Brannen Edge III, President and CEO. “This represents the second corporate pension plan investment in Flagship over the past few months. With more than 30 years of institutional investment experience, and more than USD15 billion in assets under management, CenterSquare’s investment on behalf of their client is an affirmation of Flagship’s strategy, platform, and team. This investment will help fuel Flagship’s continued growth into 2022 and beyond.”