Investment strength and new operating models
Investment in the social-healthcare sector has been growing steadily in recent years, and this has been the case in all European countries. On one hand, this is because of the higher investment in the living sector compared to other traditional asset classes, and on the other hand, because of the increase in investors and funds raised specifically for the healthcare sector since the beginning of the pandemic.
This is a counter-cyclical sector that guarantees long-term cash flows and rests on sound fundamentals. Over the last few years, we have seen a trend towards concentration in the various sub-sectors, such as hospital and healthcare groups, through the creation of Spanish and pan-European platforms thanks to M&A transactions fuelled by an era of low capital costs. This concentration has helped to create creditworthy tenants that offer sufficient guarantees to give institutional investors more assurance in purchasing assets that involve a more complex operating business than they are used to.