NEWMARK KNIGHT FRANK

Knight Frank Healthcare - Spring Market Overview 2017

R E C O R D Y E A R F O R H E A L T H C A R E

Knight Frank advised on a record volume of almost £9BN of healthcare deals in 2016, most notably Priory Group and Cambian adult services, with Q4 spiking the highest level of transactions in almost 10 years. Either side of the Christmas shoulders saw Knight Frank dispose of almost £400m of assets including Acer Healthcare, Helen McArdle Care and various fixed income portfolios totalling some 3,500 beds. Multiples reached c.12.5 YP for high quality portfolios, 4.50% NIY for fixed income and c.£500,000 per bed for Super Prime luxury care homes.

Predictions for 2017 are:

• New category of Super Prime for future proof luxury care homes

• Pioneering 2016 CareTech ground rent transaction to heighten investor appetite for more ground rent product

• Patient Hotel model to enter the UK

• Silver Private Rented Sector (SPRS) for the over 65 year old market to gain momentum

• Strengthening investor appetite for mental health and specialist registration

• Continuation of ASIA-PAC investors to source UK healthcare platforms to reverse the model into their country of origin

• Healthcare fixed income to become the UK’s stellar performing asset class

We trust that you find our latest Healthcare publication of interest and should you have any queries, please don't hesitate to contact any member of the team.

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Content Provided by Knight Frank

Julian Evans, FRICS
Head of Healthcare & Hotels

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2017 Healthcare Real Estate Outlook