Max Eiting, Savills

Political shift needed to end German care home hurdles

Healthcare operators are under financial pressure due to lack of staff, lack of storage and rising costs. “So we are seeing that a lot of operators and investors are going more from care to senior living and assisted living,” said Savills’ associate director, operational capital markets – healthcare, Max Eiting.

“We see opportunities in the value-add sector. Manage to ESG is a big topic here,” he continued.

However, he stated that there needs to be a change at the political level so that operators are no longer under pressure due to the staff shortages. Furthermore, negotiation and renegotiation of costs with long-term care insurers takes too long. “That’s a huge problem,” Eiting commented.

“In Germany we have we have 16 federal states with 16 federal laws regarding care homes. We have some elections so maybe there will be a change in some federal states. But we will see that it’s not a federal state topic. It needs to be discussed in Berlin too and we hope that that will happen soon.

Author: Paul Strohm

Residence for seniors in Villeneuve d’Ascq

La Française adds Lille project to senior housing portfolio

La Française Real Estate Managers has acquired a serviced residence for seniors. The residence, which is located in Villeneuve d’Ascq, on the outskirts of Lille, was acquired off-market from Icade and Groupe Duval.

The asset was acquired on behalf of Crédit Mutuel Nord Europe and its real estate investment company.

The residence has access to medical and commercial amenities as well as the city’s cultural offer. The asset, which is expected to be completed at the end of the first quarter of 2026, will provide 6,200 sq m on four floors and will include 130 one to three room apartments. Amenities will include a dining room, fitness room, hairdresser, multimedia lounge and environmentally friendly garden. The residence will be operated by Groupe Duval’s Happy Senior brand on a long-term lease. Happy Senior Residences provide day-to-day services and support for independent, healthy seniors.

NF Habitat HQE Niveau Très Performant certification will be sought which attests to the quality of the housing. Facilities will include a solar hot water production facility.

La Francaise REM’s director of institutional real estate investment and development Leslie Villatte said the asset is “perfectly in line with La Française Real Estate Managers’ sustainable approach and presents all the fundamentals necessary to preserve its value over time.”

La Française REM was advised by Cheuvreux, Reed Smith and Theop.

Author: Paul Strohm

Care home project in Hørsholm, Denmark

Northern Horizon fund fully invested with care home buy

Specialised healthcare real estate investor Northern Horizon’s fourth healthcare fund is now fully invested following the acquisition of a care home project in Hørsholm, Denmark, from SPD.

Danish developer Scandinavian Property Development will complete the project (CGI pictured above) in the summer of 2025 and the care home is expected to achieve DGNB Gold certification. Attendo will operate the care home.

The new 4,500 sq m private care home will provide 60 apartments designed to meet the latest standards.

The fund, which has a total investment capacity of €648 million, has already committed to 47 assets in Sweden, Finland and Denmark. Previously, the fund’s most recent acquisition in Denmark was a portfolio of six care homes which, according to Dagbladet Børsen Ejendomme, was the 3rd largest real estate transaction in Denmark in 2023.

Northern Horizon said in a statement that the  elderly population is increasing rapidly in all the Nordic countries but in Denmark alone, the population of people over 80 years is expected to increase by 39% towards 2030. As a result, many Danish municipalities are struggling to keep up with the increasing demand for care beds.

The company’s strategy is to acquire modern aged care assets in attractive locations which are let on long-term leases to strong private or public sector operators.

Author: Paul Strohm

senior living

SHHA briefing: US shows that seniors need more options

The ‘active adult’ sector is fast emerging, experts agreed at the ‘Senior Living – What we can learn from the US’ market briefing, organised by the Senior Housing and Healthcare Association (SHHA), which took place online yesterday on Real Asset Live.

“There’s an increasing demand for choices other than traditional senior living settings”

Jennifer Dixon, Founder & CEO, JD Solutions Group

“There’s an increasing demand for choices other than traditional senior living settings”, said Jennifer Dixon, Founder & CEO, JD Solutions Group. “New options are becoming available that are choice-driven, rather than needs-driven, new asset classes that require different types of operating platforms”.

Older people no longer want a stark binary choice between living in their own home or in a care home.

Caryn Donahue
Head of Senior Housing Transactions, Healthcare & Senior Living, Savills, United Kingdom

“We’ve seen a shift in the US to more independent and assisted living products, giving people more choice.”

Caryn Donahue, Head of Senior Housing Transactions, Healthcare & Senior Living, Savills

“We’ve seen a shift in the US to more independent and assisted living products, giving people more choice”, said Caryn Donahue, Head of Senior Housing Transactions, Healthcare & Senior Living, Savills. “Europe is not there yet and often nursing homes are the only option”.

The biggest challenge to a similar evolution in the UK and Europe is “the scale and quality of operators”, she said, and the fact that investors see the light-touch services model as a riskier asset class.

But given people’s preferences, the direction of travel is clear.

Elizabeth White
Founder, NuuAge Coliving, United States

“Seniors are not one homogenous group. People in their 60s are very different from people in their 80s and have different needs and expectations.”

Elizabeth White, Founder, NUUAge Coliving.

“Seniors are not one homogenous group”, said Elizabeth White, Founder, NUUAge Coliving. “People in their 60s are very different from people in their 80s and have different needs and expectations”.

In the US the average age of people in a care home is 84-85, three quarters of residents are women and many have some kind of memory impairment.

“People are living longer than ever before, but public perception has not kept up with these changes”, said Dixon. “We need to educate people on what the various options are in later life. Even in the US there’s a long way to go to make people understand the difference between senior housing and assisted living”.

Whether it’s independent or assisted living, co-living or a rental model, older people need to be given a variety of choices on how to spend their later years.

“We’re seeing an emergence of renting, which suits some people but not everyone, as it can be a cultural barrier for people who’ve always owned their home”, said Donahue. “Needs differ, so it’s important to give seniors options”.

There are differences between age groups but also differences between States in the US.

“The most successful investors and operators have realised that there’s a lot of market research to be done”, said Dixon. “Something that works in the mid-West will not fly in Washington DC, so you have to do your due diligence”.

The same applies to countries in Europe, where people’s preferences and cultural attitudes can be very different.

“It is definitely a challenge”, said Donahue. “It makes it very difficult for investors to have a Pan-European strategy”.

Author: Nicol Dynes

Source: Real Asset Insight

New senior care guest house by SevenAges impact investor

New senior care guest house concept opened in Amsterdam

Netherlands-headquartered SevenAges impact investor that finances and develops senior living real estate, is today unveiling its new concept, a senior care guesthouse.

“Demand is really high. Throughout the Netherlands, we see that people need these kinds of solutions. We are trying to find and develop more locations as soon as possible. In the coming years, SevenAges Care Hotels will also be established in other places, both in Amsterdam and elsewhere in the country. We already have a number of locations in the pipeline.” Naboth van den Broek, one of the managing partners of SevenAges.

Tolstraat 75, Amsterdam’s first SevenAges Senior Care Guesthouse, is described as a new and innovative place for the elderly or others who need extra help and care on a temporary basis, from one night to a few weeks, “whether it’s the absence of a caregiver during vacation, the illness of the caregiver himself, a (small) renovation at home, recovery after a hospitalisation, or just to be able to take a break, alone or with a spouse or partner,” said general manager Sylvian Nijhuis.

The facility, located on Amsterdam’s Tolstraat, is designed as “a hotel with care, or a care facility that feels like a good and nice hotel”, and is the initiative of SevenAges along with Stichting Logeerhuizen Amsterdam, a non-profit foundation that aims to provide (temporary) guest care, SevenAges, Cordaan, the largest healthcare organisation in Amsterdam and the surrounding area, and the City of Amsterdam.”

Tolstraat 75 currently has about 20 rooms but will have 40 by the end of 2024. Other facilities include food and beverage services, adapted rooms, a gym and physiotherapy studio, care facilities if needed, and a lobby for the use of guests, family and friends, and the general public.

“Demand is really high,” says Naboth van den Broek, one of the managing partners of SevenAges. “Throughout the Netherlands, we see that people need these kinds of solutions. We are trying to find and develop more locations as soon as possible. In the coming years, SevenAges Care Hotels will also be established in other places, both in Amsterdam and elsewhere in the country. We already have a number of locations in the pipeline.”

Author: Paul Strohm

Source: Real Asset Insight

Jennifer Dixon, JD Solutions

Senior Living in the US: 50 years and learning

Senior living. Later Living. Retirement Living. CoLiving. Care Homes. Active Adult. Assisted Living. Integrated Retirement Communities. Memory Care.

The list goes on and on, and while the names we use are unique in every country, we are all considering the same important questions: What does life look like as we age? Where do we go? Who will care for us? Where is the place we can call home?

In this SHHA brief, we explore the evolution of the United States’ senior housing market and two trends influencing its future. 

In the US, the senior living industry is about 50 years old, but the history of senior living can be dated back to the early 1800s, when the very first small group homes came into existence. For quite some time, and even today, the culture in the US was of families caring for families. It was expected that younger generations would care for their elders and if they could not that burden often fell to local group homes that had very poor living conditions.

By the mid-1900s women were entering the workforce, people were living longer and many seniors were simply not getting the care they needed in group homes or their own household. Medicare and Medicaid came into existence in 1965 and paved the way for what we now call skilled nursing. These programs allowed local care homes to use federal funds to subsidize the care of those who had acute needs. This is a program that still exists today, but it is faced with increasing regulation, concerns about adequate funding and the ability to operate in today’s economic environment.

In the early 1980s there were several senior living pioneers who questioned the notion that skilled nursing was the only answer for the needs of our aging families. The very first assisted living communities were developed, bringing to life the idea that just because someone had medical or physical limitations, it didn’t mean they had to lose their independence.  

Since then, senior living has undergone a remarkable transformation and has grown significantly to include several different property types: Active Adult, Independent Living, Assisted Living, Memory Care and Continuing Care Retirement Communities. In Assisted Living alone, there are over 30,000 communities that are home to nearly 1 million Americans. It is a unique industry where real estate, health care and hospitality intersect.

A Changing Demographic

According to US Census Bureau projections, by 2030, the baby boomer generation will have turned 65. This means that over 71 million people will be of retirement age and considering their living options for the future.

This changing demographic hasn’t gone unnoticed, with senior living investors, operators and developers preparing for the coming wave of seniors who will have very different expectations compared to previous generations.

The best example of this right now is the fast-growing senior housing category called “Active Adult.”  Active adult developments are purpose-built communities designed specifically for seniors with a strong emphasis on lifestyle and resident-directed programming. They tend to attract a much younger resident (early 70s) and have a lower price point compared to the more traditional independent living and assisted living communities. With home mortgage rates increasing, many seniors find this kind of apartment-style living financially appealing, compared to downsizing and purchasing a smaller home. 

Savvier Consumers

The consumer of today has many faces and often it’s not only the prospective resident considering their options, but also their adult sons and daughters who are influencing their choices. It’s very common to have prospective families looking at five or more options before making a decision. 

Senior living sales and marketing was forever changed during the pandemic and today’s consumer has emerged wanting education, transparency and easy access to answers. Over two thirds of senior living leads now come from digital sources and community sales teams are under pressure to respond faster than ever to these inquiries. As a result, operators have invested in sales enablement technology (video, virtual tours, automation, live chat, etc.) to improve the consumer experience and drive better results.

Forward-thinking senior living companies have realized that the greatest competition they face is not necessarily other communities, but the likelihood that many prospective residents will choose to stay in their homes.  In order for someone to make a significant life change, there must be a compelling reason or clear value to move forward. The consumer journey needs to anticipate their questions, recognize their concerns and help them envision how life could get better, no matter what your age might be.  

At its core, senior living is about selling change. The more we listen to our prospective consumers and meet them where they are in the journey, the faster senior living will grow. 

Author: Jennifer Dixon, Founder and CEO of JD Solutions Group, a sales coaching, training and consulting firm supporting senior living sales professionals, operators and investors.

The article was published in the SHHA report in October 2023

How do operators view the care real estate market?

Cushman&Wakefiled has published “CARE REAL ESTATE OPERATOR SURVEY 2023”

Care properties have become increasingly popular with investors in recent years. The linchpin of this particular market are the operators, who create a differentiated range of care provision for a wide range of needs and continuously adapt this to changes in social, structural and regulatory requirements. These have intensified again in the past year: for example, digitalisation, stricter ESG requirements and personnel shortages were joined by further reporting obligations, massively increased energy costs and the new Tariff Compliance Act.

“The demand for high-quality care operations is steadily increasing due to demographic change. Nevertheless, some operators have adapted their expansion plans to the difficult market conditions,” – comments Jan-Bastian Knod, Head of Residential Investment Germany, Head of Healthcare Advisory at Cushman&Wakefield.

The company asked 30 operators of nursing homes, outpatient facilities and assisted living about the trends, challenges and opportunities in the current market. Operators Lively and Aiutanda provide particularly deep insights in interview.

  • What is the attitude of operators towards the reporting obligations increasingly demanded by owners?
  • To what extent is there openness towards sustainability goals?
  • How do operators deal with higher energy prices and inflation-related rent increases?
  • What role does digitalisation play in care facility operations?

Read the full report: CARE REAL ESTATE OPERATOR SURVEY 2023

Threestones Capital acquires German retirement homes

Threestones Capital acquires German retirement homes

Luxembourg-headquartered Threestones Capital has acquired two retirement homes in Cologne and Künzell from companies belonging to the Huk-Coburg insurance group.

Berlin-based investment and asset management company TSC Real Estate, which specialises in property for healthcare, senior citizens and life science, advised Threestones on the acquisition of the so-called Ginkgo portfolio.

The facility in Cologne (pictured above) is located in the Kalk district close to the city centre and consists of 40 assisted-living apartments and 80 in-patient care beds. The facility was built in 2002 and is operated by a not-for-profit organisation.

The second property (pictured below) is located in Künzell in the state of Hesse. It is an in-patient nursing care facility and comprises 118 beds, primarily in single rooms.

“We are pleased that in these challenging times we have once again been able to successfully initiate and conclude a structured transaction process,” said TSC Real Estate team lead investment management, senior investment manager Maximilian Woiczikowsky.

The buyer was advised by KL Gates, JLL, Savills and Immotiss. CBRE functioned as the broker. GSC Stockmann was the seller’s legal adviser.

Author: Paul Strohm

Source: Real Asset Insight

Savills: UK Care Home Development

Spotlight: UK Care Home Development

Care Homes have proven to be a countercyclical real estate asset class, performing strongly in economic downturns, according to Savills’ latest report.


144,000 additional care home beds needed to meet population growth in the next 10 years

The number of people aged over 80 in the UK is forecast to increase by 1.1m between 2022 and 2032, to 4.5m. With life expectancy no longer increasing, the ratio of over 80s to care home beds is a good proxy for demand and indicates the need for an additional 144,000 care home beds over the next 10 years, or 14,400 new beds per annum, just to keep pace with population growth.

c.30,000 care home beds in development pipeline by 2032

There are currently 132 care homes, comprising c.5,900 beds, under construction, of which 65 are expected to complete in 2023. Looking further ahead, there are an additional c.23,300 beds at different stages in the planning system.

It is estimated that 95% of these beds will be delivered by 2032, which will equate to c.3,000 per annum and help meet the mounting need. However, there remains a significant lack of new supply coming forward to meet future demand, highlighting the very strong case for increased development.

175 days to secure planning permission in 2022 – although the planning process is getting faster, it still presents a hurdle

In 2022 there were 221 applications for new care homes across the UK: 46% of these have secured planning permission to date and on average took 175 days to progress from application to permission.

This is down from an average of 252 days in 2017, indicating some progress in reducing planning timelines.

Only 14,500 care home beds delivered since 2020, and the sector remains significantly undersupplied

Across the country around 300 new care homes have been completed since 2020, adding an additional 14,500 beds. Close to half of these new beds are in London, South and East England.

The new delivery equates to an average of c.3,900 beds per annum, which is less than one-third of the 14,400 beds needed to maintain current ratios, given population growth.

c.66% of new development planned in London, South and East England

The majority of pipeline is coming forward in South and East England, driven by higher levels of housing wealth, which underpins the ability of residents to pay for private care.

However, this also highlights a challenge facing the sector in terms of how to deliver much-needed care homes in less affluent markets.

61% of care homes have an EPC C or above

The majority of existing care home stock has an EPC Grade C or above, putting the sector in an advantageous position compared to the broader residential market, where only 40% of homes meet or exceed EPC Grade C. In the short term, this positions care homes favourably to comply with forthcoming energy efficiency regulations, which are slated to mandate a minimum EPC Grade C by 2027.

However, regulations are then expected to tighten further to require an EPC Grade B from 2030, which will create a need for further investment in, or potentially the replacement of, approximately 70% of existing care home stock, intensifying the focus on ESG and Sustainability standards for new developments.

Read the full report: Spotlight: UK Care Home Development

The Future of Serviced Living: The 3rd Annual Senior Living Conference

Serviced Living is growing in importance and is being recognised by policy makers as an important component in the planning of urban neighbourhoods. If you want to find out more about future developments and business opportunities in the sector, don’t miss the 3rd Annual Senior Living Conference.

Taking place on 18-19 October at the SZ Tower in Munich, Germany, the conference promises inspiring presentations, interactive workshops and networking opportunities. Experts such as Dr Philip Huperz from GSK Stockmann will show you how to incorporate ESG requirements into your projects in compliance with regulatory requirements. The AEGIDE Group, presented by Julien Claude, will showcase successful international implementations of serviced housing.

The event will also focus on sustainable supply concepts for demographic change in urban environments. Prof. Dr. Harald Rau will present the Future Project Cologne, showing new ways in healthcare real estate.
The conference programme covers a wide range of exciting topics, including the integration of serviced housing into urban and regional planning, cost-effective solutions in cooperation with construction companies and the implementation of co-living models with senior citizens. Flexible and digital service delivery will also be on the agenda.

Get a head start on your knowledge with world-class presentations, high-profile speakers and exciting discussions. You can also take advantage of the Early Bird Offer until 14.08.2023, which will give you a €200 discount on your ticket to the event.

We look forward to opening up new perspectives and bringing you together with some of the leading minds in the industry.

To find out more and register, please visit [link]