Driven by appealing return/risk conditions, and the secure cash flows available through fixed and long-term leases, the European healthcare real estate sector saw a record €5.8bn of M&A transactions in 2015, an increase of 40% on 2014.
The total healthcare property market in Europe is estimated to be worth circa €300bn, offering yields of about 6% based on net rents (excluding transfer duties and taxes). As such, there are numerous opportunities for healthcare development and consolidation across the continent.
Recent major deals
Investment in the healthcare real estate market continues to grow fast, particularly in the elderly, hospital care and primary care sectors, driven by strong demographics and the ageing population. Healthcare assets represent an attractive investment with good yields, long leases and strong access to publicly funded linked rental streams for many years to come. Against this backdrop we expect to see continued strong M&A activity and opportunities across the sector.
Clearwater International’s Real Estate team has a track record of advising businesses through strategic M&A and investment transactions including raising development capital, debt advisory, acquisitions, management buy-outs and partial or full exits to strategic financial or trade buyers. Our specialists offer unrivalled sector knowledge, working with leading industry players.