Cheap debt drives heated market in US and Europe
Transaction activity is booming in the elderly residential care market across North America and Western Europe, according to financial consultants Clearwater International, who say the activity is driven by the availability of cheap debt, an increasingly ageing population, rising demand for specialist care for conditions such as dementia, and reablement care.
In the United States in November, Second Spring Healthcare Investments acquired a portfolio of 64 skilled nursing facilities from Welltower Inc., the listed US real estate investment trust, for €990m. AIM Group Holding Limited bought a portfolio of three senior living communities in areas surrounding Washington D.C. and Atlanta, for €104m and SHA Housing Limited purchased a €30m portfolio of supported living assets from Topland Group.
In Europe, Clearwater has advised Colisée Group on the acquisitions of elderly home care providers Bien à la Maison and Nouvel Horizon Services. They have also advised Primonial REIM, the French real estate investment trust on the acquisition of Gecina’s healthcare division of 74 clinics and nursing homes.