The fast-growing healthcare sector in Europe offers certainty and the guarantee of a cashflow because it is immune to political tensions and economic slowdown, delegates heard at Investment Briefings’ Netherlands & Europe Panel, which was held in Amsterdam last week.
‘We think the healthcare sector will explode and there will be a European investment market in the healthcare business,’ said Ron van Bloois, Partner, HEVO. ‘I am relaxed about geopolitical issues because I am only interested in demographics and the ageing population.’
The forecasts about demographic trends are very accurate, he said, and they are the driver that makes healthcare a very interesting asset class. ‘It has two distinct sides, two faces,’ van Bloois said. ‘One is the more specialised properties, like private clinics and hospitals and healthcare centres, while the other is the more residential side like senior living.’
Residential will play a bigger role in future because more and more people will want to live in a safe and pleasant complex, van Bloois said. ‘We see a shift towards resi, and the upside for investors will be the long-term leases. But it requires an understanding of the operational issues and of the cashflow.’
The sector is attracting operators with large portfolios to upgrade and investors looking for diversification, yield and investment volume but also impact investment. ‘In the healthcare sector both worlds come together,’ he said. ‘It is interesting to see significant cross-border activity in Europe by operators and investors, who are active in France, Belgium, Germany and the UK.’
Contact the editor here.