INVESTMENTS IN NURSING CARE FACITILITIES
Studies have shown that about 15,000 nursing beds have to created every year. Without private investment in housing for senior citizens, there is no hope to reach this number. In many cases, communities and small non-profit operators do not have the necessary reserves to renovate older housing for senior citizens or to build new one. In addition, existing senior citizens’ homes cannot continue to operate or have to be replaced with new buildings, because of the regulations for building homes has changed or the residents’ usage behavior has changed. This will result in a higher need for modern facilities nationwide for the foreseeable future, which makes nursing care facilities a good capital investment for institutional investors, who are looking for sustainable investments in real estate.
THE OPERATOR MODEL MINIMIZES EFFORT AND OFFERS SECURITY
In comparison to traditional residential and office real estate, nursing care facilities offers a range of important advantages. Reliable rental income is guaranteed over many many with the help of professional operators who have many years of experience.
Operators of nursing care facilities are concerned with the running operation of the property, renovation work, letting and vacating. Nursing care facilities are a clearly defined asset class and are relatively easy to finance. A significant portion of the property can be refinanced by long-term care and social insurance funds. Higher yields than residential investments, currently between 5 % and 6 % make this asset class attractive for investors.