United Kingdom Healthcare MarketView Q1 2015
In this edition of CBRE’s UK Healthcare MarketView, Tim Street of Patron Capital talks to Keith Harris following the successful sale of Gracewell Healthcare to Health Care REIT (HCN) to outline where he sees the UK Healthcare market moving over the course of 2015.
- UK institutional investors invested £750m in 2014 capitalising on an increasingly liquid market.
- Overseas investors remained the most active buyer group but 2014 was as much about M&A activity by PE Funds and Trade Buyers as it was about the US REITs. There were 15 WholeCo exits in 2014.
- Pricing has increased across the board. EBITDAR multiples are up and investment yields are down.
- Investor demand widened across all healthcare asset classes and risk profiles, increasing potential funding and deal flow for 2015.