Demand for care properties remains strong – knight Frank

In its latest market review, property business Knight Frank has reported that UK healthcare sector has seen £7bn worth of restructuring throughout the year. Its UK Healthcare Market Review Autumn 2013 advised that demand from purchasers was strong for distressed portfolios with a potential upside for high quality assets, with demand ties to aggressive pricing. It forecast that the end of 2013 could see the disposal of HC-One and a number of mid-cap corporate operators as the finale of restructuring processes’ (see this issue Company News). REIT activity in the UK was also highlighted in the market analysis. The report said: As the UK healthcare landscape stabilises and demand outstrips supply for healthcare fixed income in North America, the US REITS in particular have been seeking UK product. However, REIT investment targets are limited simply because there is a paucity of quality UK care home platforms, hence part of the reason they have been prepared to pay strong prices for best in class assets.