Investment volume in Dutch care real estate totals €233 million in H1 2017
Investors and healthcare organisations are increasingly joining forces
In the first half of 2017, investors spent around €233 million on real estate for the care sector. CBRE’s Trends in real estate for the Dutch care sector provides an insight into the latest trends in the market for care real estate. Approximately 73% of the total investment volume related to real estate for elderly care (extramural, intramural (nursing care) and private residential care).
More and more care providers are deciding to sell the real estate in which they provide care. This provides them with liquidity, reduces their real estate risks and enables them to focus on providing good care over the long term. Increasingly, this type of real estate transaction is taking place through close cooperation between care providers and investors. Using smart constructions, these providers can maintain a long-term commitment to the complex and continue to provide care in it. Investors often fund improvements and sustainability enhancements in the care complex.
New residential care concepts
In this special edition, CBRE explains the different types of accommodation available for care-dependent senior citizens. Due to changes in government policy and the fact that recipients of care (and their families) are becoming increasingly critical consumers, more and more of them are making conscious choices about where they wish to live and receive care. New and existing care providers are playing a role in this and are rolling out new residential care concepts that are more closely tailored to the care needs of senior citizens. These concepts also take account of the new form of funding for care that the government has put in place to mitigate the increasing cost of care in the Netherlands.
Break-down of investment volume
Of the total investment volume in the first half of 2017, around 35% originated from investors from Belgium or entities of Belgium investors. Around 28% of the total volume was invested in Noord-Brabant, around 17% in Utrecht and around 16% in Gelderland. The remaining 39% was invested in the other provinces of the Netherlands. CBRE noted 43 transactions in the care sector with an average volume per transaction of approximately €5.4 million. Around half (49%) of the available real estate was sold by care providers. Transactions between housing corporations and care providers are not included in these investment figures.
CBRE expects that investors will acquire more care real estate in 2017 than ever before. This means that the previous record – €465 million in 2016 – will be surpassed.
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 2017 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.