CBRE: “Strong increase in investments in healthcare centres”
Investment volumes in healthcare real estate are set to increase again in 2018
International real estate advisor CBRE expects investors’ interest in healthcare real estate to increase again this year. In addition to investments in accommodation for senior citizens, investments in healthcare centres also increased sharply last year. There are currently over 440 healthcare centres in the Netherlands, 30 of which were sold to investors in 2017. This is double the amount sold to investors in the previous year. This information stems from the CBRE Healthcare semi-annual research report, which was published today.
Around 30% of healthcare centres in the Netherlands belong to housing associations and institutions. We expect these housing associations and institutions to sell a large proportion of their healthcare centres over the next few years. Owning healthcare centres doesn’t contribute sufficiently to the core activities of these organisations, and means that their capital is tied up. The majority of the healthcare centres currently owned by housing associations and institutions will be sold to institutional investors, property funds and private investors.
The commercial healthcare real estate sector saw a record investment volume of € 630 million in 2017. (Social real estate purchases by housing associations are not included in this figure.) The report shows that last year, investors invested the most money in extramural accommodation for senior citizens (approximately € 200 million) and private residential care (approximately € 195 million). The investment volumes in intramural care and healthcare centres also increased considerably last year. The average volume per transaction was approximately € 5.6 million. CBRE expects the investment volume in healthcare real estate to break records once again in 2018.
If you would like more information, you can download the CBRE Healthcare Report on the right side of this page.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers from more than 450 offices (excluding affiliates) worldwide. CBRE offers strategic advice and guidance in property sales and leasing; corporate services; property, facilities and project management; appraisal and valuation; development services; investment management; and research and consulting. Please visit our websites at www.cbre.nl and www.cbre.com.