The shift in private operators’ concentration in the dependent care sector has led to the creation of 4 large groups that currently boast a 60,000-bed capacity. These now account for over half of all beds in this segment (118,000 beds recorded as at the end of 2011). Operators are currently interested in developing a supply of services for an ageing population with limited resources while the Ministry of Economics is seeking to promote the so-called “silver
Following a record year for investments in 2012 (€850 million), the healthcare real estate is now entering a new phase of its development: with fewer portfolio acquisitions but more disposals of single assets recorded in 2013, the market is being driven by sales between investors and no longer mainly by outsourcing initiatives. Year 2013 should draw to a close with a volume of €460 million in disposals.
The top 10 healthcare operators still hold real estate portfolios worth almost €5 billion including all asset types. This represents a significant outsourcing opportunity for investors in healthcare real estate. With a requirement for the creation of a further 75,000 to 100,000 nursing home beds by 2025, the investment potential stands at around €4 to €8 billion over the 10 next years.
Investment in healthcare real estate is therefore reaching maturity and is now firmly anchored in the strategy of the main investors (property companies or funds). The only limit on investor appetite is the availability of assets on the market. Challenges in the healthcare sector (dependent care for the elderly, difficulties in the not-for-profit public sector) are creating opportunities for operators and, in fine, investors.
Source : DTZ (Groupe UGL)