European care home investment

October 2016

Silver investment is booming

■ European care home investment volumes reached approximately €2.6bn during the first half of 2016, which is 60% higher than the same period in 2015.

■ The highest levels of activity recorded during 2016 H1 were France (€878m), Germany (€870m), the UK (€244m), Finland (€218m), the Netherlands (€175) and Sweden (€116m).

■ This increased appetite from investors has had an inevitable downward pressure on prime care home yields in Europe, which currently range between 4.4% and 7.5% depending on country, location and quality of asset.

■ Care homes and more generally alternative assets are becoming a mainstream. Over the past 15 years investment allocations outside the traditional commercial sectors (office, retail, industrial) have been increasing by 25% yoy on average.

■ The sector itself really emerged as an asset class in 2012 when we saw European investment volumes triple.

■ In the past five years new operators were created and new concepts emerged and the sector has undergone major M&A.