Belgium-based real estate specialist Aedifica has confirmed the sale of five of its nine Orpea homes, all located in Brussels. The news confirms previous speculation that Belgium was next on the French nursing home’s divestment list from a €1.2bn chunk of its real estate portfolio.
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.
HBI catches up with Stephane Pichon ahead of the Investing in Health Care Property panel at HBI 2023, to discuss the dramatic changes of the past year and how this has impacted health care real estate investment, and the long term outlook for the health care sector.
Health care real estate has become an increasingly attractive asset class for investors in recent years. But will this continue in the face of rising inflation and interest rates?
Orpea is selling 32 of its nursing homes in The Netherlands to Syntrus Achmea Real Estate & Finance (a REIT) for approximately €125m, as part of the asset disposal part of its plan to clean up its finances. The company, which is also trying to clean up its reputation in light of accusations of malpractice, has agreed to pay back €55.8m to the French government after public investigations following the suggestion it misappropriated public funds.
French REIT Icade Santé is on a buying and selling spree. On June 30, the company finalised the purchase of Spanish care facilities for €60 million. Two days before it sold four healthcare facilities in France for €78 million.
Property investors have become increasingly attracted to healthcare assets in recent years, driven by a juicy combination of low risk and high yields. But recent scandals have highlighted the reputational risks of the sector, which property investors are not entirely immune from, and so a focus on ESG that goes beyond energy efficiency requirements for buildings has become essential.
Investors, in pursuit of steady returns and limited risk, are in love with the healthcare sector. How can operators best exploit this and what impact does divesting property really have on valuations? What is likely to happen to yields in the near future and how much appetite for risk to specialist investors have? What do […]
HBI catches up with Stéphane Pichon, founding managing partner, Your Care Consult, and chair of the Investing in Healthcare Property session at HBI 2022 on June 21, to find out how the healthcare property market fared last year, and prospects for the future.
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