Multiple sources tell HBI that French nursing home operator Orpea is looking to sell up in Belgium, as it looks to sell off a chunk of its 1.2bn real estate portfolio. HBI also hears more speculation on the ongoing country-by-country review.
For-profit hospital group Ribera Salud says that having won the May 2023 elections, the new Partido Popular (PP) administration in Valencia is keen to protect and grow the Alzira model that was being dismantled by the previous leftist government. Meanwhile, Ribera is growing in the Middle East.
The Slovak government is refusing to allow the state-owned National Health Insurance Fund (NHIF) to pay for any treatments at Bory Hospital - the new €250m, 400-bed facility that Penta Hospitals International (owned by Penta Investments) has recently opened in Bratislava. The refusal marks another round in the battle between Penta and the Slovak state.
Investors in Europe’s health care sector are increasingly looking at minority stakes and public-to-private deals in the face of market uncertainty and unfavourable debt financing conditions, according to speakers on the Investing in Europe panel at HBI 2023.
US-based healthcare real estate investment company Flagler Healthcare Investments is eyeing up opportunities in the big five European markets. Undeterred by high levels of regulation and hyper fragmentation, the German market is of particular interest.
High borrowing costs are making large scale health care real estate acquisitions funded by debt unprofitable in Europe, according to a consultant we spoke to at HBI 2023. Instead, investors are concentrating on smaller acquisitions financed purely by cash.
“Doing good is good for business,” said Thomas Rajzbaum, partner at Swedish private equity investment firm EQT Partners, in a succinct summary of the overwhelming sentiment of all the speakers on the ‘Building a robust ESG framework’ panel at HBI 2023.
“Normally I begin by presenting lots of M&A activity over the past 12 months and a rosy outlook,” Hedley Goldberg, managing director at multinational investment bank and financial services company Rothschild & Co., told delegates at the M&A Landscape plenary session at HBI 2023, “but today is not that day.”
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