Category: Allgemein

Azora has entered the French market with the acquisition of Emeis Group’s senior independent living business, a portfolio which comprises 17 properties and 1,850 apartments located in major cities including Paris, Marseille, Bordeaux, Amiens and Reims.

“The acquisition of this portfolio represents another important milestone in Azora’s international expansion, extending its activities to one of the most significant markets in Europe”, said Carlos Fernández de Araoz, Partner at Azora and head of the transaction.

The acquisition, which adds to the Spanish group’s existing senior independent living portfolio, was made by a joint venture between Azora Capital and Twentytwo Real Estate Fund III and the portfolio will be managed by Jardins D’Arcadie, a leading operator with 120 properties and 11,000 senior living apartments under management.

The residences are designed to meet the needs of older adults who are able to live independently but seek a safe and community-oriented environment. They offer a wide range of services aimed at the well-being of residents, including landscaped gardens, a restaurant, a café, TV and meeting lounges, as well as physiotherapy and spa facilities.

The acquired portfolio is one of the highest quality in the independent living segment in France, with assets strategically located in major cities. France has been a pioneer in senior independent living, a segment which began developing 25 years ago and which today has 1,100 establishments and 95,000 homes.

“This investment reinforces our commitment to meeting the growing social infrastructure needs – in this case, within the senior living segment driven by Europe’s aging population – through the development of high-quality real estate”, said Javier Rodríguez-Heredia, managing partner, Azora. “At the same time, it opens up new investment opportunities in France, a country which, with 69 million inhabitants, is the third largest market in Europe by GDP and also the third largest for institutional real estate investment.”

The transaction brings Azora’s senior living assets under management to €800 million, with 53 assets and a total of 5,000 beds and 3,000 independent living apartments, making it the leader in the Spanish senior real estate investment market, both in the nursing home segment and in the independent living segment.

Azora is also delivering on its international expansion strategy, adding a presence in France to its geographical footprint which already spans 12 countries. In addition to Spain, the firm has a significant presence in key markets such as the United States, Italy, Germany, Ireland, Greece, and Portugal.

Author: Nicol Dynes, Real Asset Insight

Welltower, a US-based real estate investment trust specialising in senior housing and healthcare infrastructure, has acquired Barchester Healthcare, one of the UK’s largest care home operators, in a £5.2 billion transaction. The sellers are Irish businessmen J.P. McManus, John Magnier, and Dermot Desmond, who have owned the company since 1994 and are now making a full exit.

The deal marks one of the largest UK healthcare real estate transactions to date and highlights growing international investor appetite for senior living and long-term care assets.

The portfolio includes 223 care homes and hospitals with about 14,500 beds, alongside 21 development projects. The transaction combines 111 communities managed by Barchester under a RIDEA structure — the REIT Investment Diversification and Empowerment Act model, which allows a property owner to participate directly in the operating performance of the business.

Around 152 properties are leased on long-term triple-net agreements that include 3.5% annual rent escalators and five-year rent reset options.

“The announcements mark a watershed moment in Welltower’s history as we continue to evolve: intensifying the company’s focus on seniors housing and accelerating the operational and technological modernization of the business through the Welltower Business System,” said  Shankh Mitra, chief executive officer of Welltower.

“We are excited to expand our presence in the UK and continue to partner with the highest quality operators as evidenced by the Care Quality Commission in the UK (CQC) having rated 86% of our communities as good or outstanding, well above the national average of 72%, with none of our properties having been rated as inadequate.”

Dr Pete Calveley, chief executive officer of Barchester, added: “Through our strategic partnership with Welltower and their significant and ongoing investment into their operating platform, we expect to continue to meaningfully enhance the lives of thousands of older adults by delivering not only exceptional care but also fostering environments rich in social and cognitive engagement.

“By prioritising safety, connection, and activity, we’re supporting better long-term health outcomes and consistently high resident satisfaction – hallmarks of a superior living experience.”

Welltower financed the acquisition through a combination of debt and capital recycling, as part of a broader $23 billion investment and divestment programme announced in October 2025. The company said its focus on seniors housing will rise to around 85% of total net operating income as it continues to rebalance its global portfolio.

Founded in 1992 by Mike Parsons, Barchester employs more than 16,000 people across the UK. The management team will remain in place following the transaction, which strengthens Barchester’s development pipeline and positions it for further expansion under Welltower’s ownership.

Author: Jason Mitchell, Real Asset Insight

Northern Horizon, the leading specialized social infrastructure asset manager in the Nordics, today announced new equity commitments of EUR 220 million for its latest fund, Aged Care Social Infrastructure Fund (“ACSIF”) and includes new investments from KZVK Dortmund and Helaba. The new capital takes the Fund’s equity above EUR 600 million, with AUM of approx. EUR 900 million. The new capital coincides with several attractive acquisitions of care homes and development projects in all the Fund’s core markets, adding up to EUR 120 million, demonstrating the team’s ability to deploy capital swiftly.

The rapidly ageing population of the Nordic countries has led to a structural and growing undersupply of
care beds in the region. Launched in 2024, Aged Care and Social Infrastructure Fund is committed to
addressing the shortage of modern care homes in the region by investing in new, fit-for-purpose care
facilities as well as forward purchase and forward-funding projects.

The new capital will enable Northern Horizon to scale the Fund’s strategy to achieve greater impact and
value for its investors while simultaneously further reducing the leverage, cementing the company’s
leadership in Nordic social infrastructure.

‘Additional investments are urgently needed to keep up with increasing demand for modern care assets in our region, and the new equity will enable us to grow our platform further in close cooperation with the leading operators, developers, and municipalities in the Nordics. We are very grateful for the trust the
current and incoming investors are placing in us. Encouragingly, we are seeing the momentum in our
fundraising continuing, so we are very optimistic about the next growth phase of our journey,’ commented Christoffer Abramson, Group CEO, Northern Horizon.

The new equity is raised mainly from German institutional investors KZVK Dortmund and Helaba. The Fund also attracted capital in the form of top-ups from current investors in the UK and Switzerland. The capital raise represents a pivotal milestone for Northern Horizon as it includes the largest single ticket in the company’s history.

‘It has been challenging times in the capital raising area for many managers, so we are honoured by the
continued support from existing LP’s and the new LP’s we are onboarding. To see that the firm is bringing
in the largest tickets in its history is credit to the robust market fundamentals here in the Nordics with high growth potential, solid yields, and a very attractive risk profile, and they also value the social impact. We see increased global interest from international institutional investors and this re-confirms our plans to remain dedicated to this segment and be the market leader in the social infrastructure space here in the Nordics’, added Andrew Smith, Partner and Head of Group Business Development.

Over the summer, the Fund has successfully closed deals in all its core countries.

In Denmark, an attractive portfolio of three aged care assets was acquired from AP Pension, a major
Danish pension company. The portfolio, comprising a total of 17,500 sq. m and 182 care beds, was
acquired in an off-market deal. All three care homes are operated on 30-year fully inflation-indexed
lease agreements, and the average remaining lease term is 26 years.

In Finland, the Fund recently made two off-market acquisitions: a portfolio of two standing assets in
Espoo and Lahti was acquired from eQ Community Properties Fund, and a property in Espoo was
acquired in a forward-funding deal. The two acquisitions amount to a total of 6,200 sq. m and 127 care
beds.

In Sweden, the Fund acquired a care home from Skanska in a forward-purchase off-market deal. When
completed in 2027, the care home will have 80 care beds for elderly residents and will be operated by
Falun Municipality.

Following these transactions, ACSIF’s asset portfolio will consist of 70 first-class, fully leased healthcare
assets in Sweden, Finland, and Denmark. ‘Having been with the firm since the inception of Fund 1 in this space and with now 17 years of segmentspecific expertise combined with strong networks in each country have helped us build a best-in-class portfolio of modern, energy efficient assets, confirmed by the GRESB 5-stars rating. We now have significant capital to deploy, we have a strong off-market pipeline, and we will continue to be very selective in the best interests of our investors,’ added Jussi Rouhento, Fund Manager for Aged Care and Social Infrastructure Fund.

In the fundraising, UBS Investment Bank’s Real Estate Private Funds Group acted as Placement Agent to
Northern Horizon.

Audley Group and Elysian Residences have announced their merger, creating the largest retirement village provider in the UK and a group with a combined sales value of over £3 billion.

The new Group company, created with external investment from institutional funds, has over 30 villages both in operation and in the pipeline that represent around 3,000 individual properties.

The merger brings together three retirement village brands, Elysian, Audley Villages and Mayfield Villages, which will all be retained. The three village brands will sit under a new corporate group, which will be led by Gavin Stein as CEO and Nick Sanderson as chair, with Stein remaining CEO of Elysian Residences and Sanderson CEO of Audley and Mayfield. 

“Investors have recognised the benefits of the long-term secure income stream that retirement villages offer”, said Nick Sanderson, CEO & Founder, Audley Group. “Now is the right time to capitalise on that interest and bring together aligned brands to create more operating villages This sector needs scale – it is still very small given the size of the opportunity and the growing older population, and this is a first step to expediting the additional retirement housing units the country so desperately needs.”

Elysian and Audley are complementary models which have already reached significant scale and will continue their growth trajectories to bring new units to market across the country. Mayfield, in the mid-market, is a relatively new brand in an underserved sector, providing the same full-service model but at a more affordable price point.

“With our new investors, we will provide a best-in-market retirement living business of real scale and expertise”, said Gavin Stein, CEO & Founder, Elysian Residences. !This is further proof of the great potential in the rapidly growing residential sector, where we will be at the forefront of driving change, embracing new ideas and identifying innovative solutions for our customers and investors.”

The Group says that the timing of the merger provides extensive opportunities, with a recent report from Savills finding that owner occupiers aged 65 plus hold a record £2.6trillion of net housing wealth.

In 2024, the pipeline of retirement housing in the UK reached just 30,000 homes, falling short of the 50,000 per year needed to meet the demand in the sector. £1.25billion was invested and committed to the retirement housing market in 2024, with investment expected to increase in 2025, according to the latest Knight Frank UK Senior Housing Market Update.

Author: Nicol Dynes,

Source: Real Asset Insight

Expanding Long-Term Care and Proactive Longevity Planning

The global demographic shift toward an aging population presents both challenges and opportunities for governments, industries, and communities worldwide. According to the World Bank’s recent report Unlocking the Power of Healthy Longevity, expanding and diversifying long-term care (LTC) options for older adults is essential to ensuring their wellbeing and maintaining economic productivity, particularly in low- and middle-income countries (LMICs).

The Growing Need for Long-Term Care

Even as gains in healthy longevity improve life expectancy and quality of life, many older adults will eventually experience functional limitations requiring some form of LTC. Long-Term Care (LTC) refers to a range of services and support systems designed to meet the health, personal, and social needs of individuals who are unable to fully perform everyday activities over an extended period. These individuals typically include older adults, people with chronic illnesses, and those with disabilities or functional limitations.

The primary goal of LTC is to ensure the dignity, wellbeing, and quality of life of care recipients by addressing both their medical and non-medical needs.

Traditionally, informal family care—often provided by women—has been the cornerstone of care for older adults in many cultures. However, changing family structures, urban migration, and increasing workforce participation among women are making informal care models unsustainable as the sole solution.

As the World Bank report highlights: “Traditional models of informal care in extended families cannot be the only option. Formal care systems that complement these models are limited and fragmented in most LMICs, creating challenges for both caregivers and older adults.”

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Why Diversifying LTC Options is Essential

Expanding the portfolio of LTC options is critical for three reasons:

1. Wellbeing and Dignity of Older Adults: Affordable and decent LTC options are vital to preserving the dignity and quality of life for many older adults. Informal care alone cannot meet the growing need.
2. Empowering Informal Caregivers: Developing formal LTC systems can alleviate the burden on informal caregivers, enabling many—especially women—to pursue paid employment, education, or community service. This enhances their wellbeing and human capital.
3. Economic Opportunity: Building professional LTC systems creates jobs, particularly for women, and fosters growth in the emerging “silver economy,” which is becoming a vital industry in aging societies.

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Proactive Longevity Planning

While LTC is critical, Ron van Bloois of the Senior Housing and Healthcare Association (SHHA) underscores the importance of proactive solutions that support healthy aging and longevity: “As the SHHA, we see a need for LTC actions, but we also advocate for proactive solutions that support healthy aging and longevity—such as senior living. While long-term care remains critical, addressing care needs earlier—by building appropriate infrastructure and support systems—can reduce reliance on intensive care solutions and create significant societal and economic benefits.”

Proactive longevity planning includes several impactful strategies:

• Integrated Retirement Communities (IRC): Senior housing models, such as IRCs and co-living spaces, empower older adults to live independently longer. These environments promote social interaction, wellness, and safety while reducing reliance on long-term care.
• Healthier Aging through Supportive Environments: Providing appropriate housing, healthcare, and community support at certain life stages fosters well-being, delays the onset of chronic conditions, and enhances quality of life.

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Economic and Social Benefits

Proactive longevity planning offers clear advantages for both society and the economy:

1. Savings for Healthcare Systems:
   Housing-with-care models reduce healthcare costs by an estimated 38%, according to SHHA data. If 250,000 Europeans aged 65+ were to live in such settings by 2030, the potential savings could reach €5.6 billion.
2. Addressing Housing Shortages:
   By integrating senior housing solutions, communities can free up significant housing stock for younger generations. For instance, in the UK alone, housing-with-care models could free up 562,000 bedrooms by 2030.
3. Reducing Pressure on Caregivers:
   Proactive solutions reduce the reliance on informal caregivers—primarily women—who often balance caregiving with employment. This alleviates caregiver burden and promotes gender equality in the labor market.

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Policy Recommendations for Building Sustainable LTC Systems

The World Bank outlines four key policy directions for LMICs to promote context-appropriate, affordable, and compassionate LTC solutions:

1. Adopt a Balanced Mix of Care Offerings:
   A mixed care system that includes day care centers, home-based services, and tele-assistance can address diverse needs while promoting aging in place. Examples include Myanmar’s innovative loan program for home adaptations, which supports the construction of accessory dwelling units for older relatives. Nonprofit organizations and community-based initiatives also play a significant role in filling gaps in care provision.
2. Engage the Private Sector and Strengthen Governance:
   The private sector has been a key player in building LTC systems globally, often through government-supported incentives like tax breaks and construction subsidies. However, robust regulatory frameworks are needed to ensure quality and prevent issues like profiteering, which have been observed in some privatized nursing homes.

The report emphasizes, “Strengthening government stewardship and regulatory capacity is essential to set ground rules and ensure service quality, particularly in LMICs where oversight is often lacking.”

3. Systematize LTC Financing:
   Organized LTC financing is critical to reducing access gaps, inequalities, and out-of-pocket expenses. Countries are encouraged to adopt broad-based social insurance models to fund LTC systems. Subsidies or vouchers for low-income individuals can also promote aging in place by enabling access to home- and community-based care.
4. Build the LTC Workforce and Support Family Caregivers:
   Skilled human resources are a bottleneck for LTC services in many countries. Investing in caregiver training and offering support services—such as respite care and counseling—can improve care quality while reducing caregiver stress.

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Expanding the Scope of Longevity Planning

Combining formal LTC systems with proactive strategies, such as those advocated by the SHHA, creates a more holistic approach to healthy aging. This dual focus can help societies adapt to the demographic realities of aging populations and ensure a better quality of life for older adults.

As Ron van Bloois concludes: “By fostering healthier aging environments and building the right infrastructure early, we can reduce reliance on intensive care while promoting dignity, independence, and economic sustainability for all generations.”

Proactive planning, innovative housing solutions, and better support for aging in place will be critical to unlocking the full potential of longevity and creating healthier, more resilient aging societies worldwide.

Leading investment strategy advisor opens new chapter in its corporate evolution

DLE Group AG, an international investment strategy advisor with a focus on real estate and €2.2 billion in assets under management, is unveiling a new corporate identity and will henceforth operate under the name of Periskop Partners AG. Its subsidiaries will be renamed Periskop Development GmbH, Periskop Living GmbH, Periskop Logistics GmbH, Periskop Capital AG, and Periskop Poland Sp. z o.o.

The rebranding reflects a more diversified business focus while maintaining an emphasis on the German real estate market and opportunities in neighbouring European countries. The move marks the beginning of a new chapter in the company’s evolution, where innovation, forward-thinking, and partnership will be core values.

The name “Periskop” symbolizes foresight, perspective, and the ability to act presciently. It represents the company’s mission to not only understand the current market but also anticipate emerging trends for the benefit of investors and society, identifying market potential beyond the obvious. The term “Partners” underscores the philosophy of collaboration and connection among equity partners within the company’s subsidiaries while highlighting the close relationships with investors, built on integrity, transparency, and authenticity.

Lars Meisinger, CEO of DLE Group AG, points out: “The name Periskop Partners reflects the widened scope of our investment expertise. The name DLE, an acronym for ‘Deutsche Landentwicklung,’ had become too narrow and was no longer adequate. Over the past couple of years, we have evolved, investing with specialized teams in land development, as well as in senior living, logistics, and mezzanine capital. With Periskop Partners as our umbrella brand, we aim to highlight both our collaborative approach towards investors and the entrepreneurial involvement of our investment teams.”

With business segments in Land Development (Germany and Poland), Mezzanine Capital, Senior Living, and Logistics, the company positions itself to address long-term megatrends such as land scarcity, aging populations, supply chain security, and the disintermediation of banks in the real estate sector. The growth strategy is designed to create value for both investors and society.

Julien Höfer, Chairman of the Supervisory Board of DLE Group AG, adds: “The rebranding aligns with our vision for ambitious and internationally oriented business development. With Periskop Partners, we are opening a new chapter in the company’s journey.”

As part of this comprehensive rebranding, Periskop Partners is introducing a new logo, corporate design, and website. The new visual identity signals a future-focused perspective and creates a strong brand presence.

The legal transition from DLE Group AG to Periskop Partners AG is scheduled for Q2 2025, while the subsidiaries will be adopting their respective new names as early as December. The new website, www.periskop.ag, is now live as a soft launch.

About DLE Group AG 

DLE Group AG (henceforth Periskop Partners AG) is an international investment strategy advisor with a strong focus on the real estate sector. Headquartered in Berlin, with offices in Frankfurt, Leipzig, Warsaw, and Zug, the company initiates and advises funds managing over €2.2 billion in assets and a gross development volume of €15 billion^[1]. Periskop offers high-yield solutions for institutional investors, family offices, and investment firms worldwide. With extensive experience in land development, among other areas, the company has successfully expanded into senior living, logistics, and development financing, prioritizing future-proof values and ESG standards.

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[1] Figures as of June 2024. Gross Development Volume (GDV) of the DLE Landbanking Funds is a metric estimating the market value of a plot or development after completion and subsequent sale or lease.

SHHA Partners with UK’s National Innovation Centre for Ageing

We are excited to announce a strategic partnership between the Senior Housing and Healthcare Association (SHHA) and the UK’s National Innovation Centre for Ageing (NICA). NICA, supported by the UK Government and Newcastle University, is a world-leading organization dedicated to co-developing and bringing to market products and services that foster a world where we all live better, for longer.

“We are shifting from an aging society to a longevity society,” said Nic Palmarini, Director of NICA, during SHHA Senior Housing and Healthcare Summit in Brussels. “The kind of life that boomers and the following generations see ahead of them, with its chronological breadth and enormous social and technological possibilities, basically didn’t exist before. This is a greenfield, a new opportunity for society at scale and it needs a market able to understand and sustain all the innovations we envision in the landscape: from business models to planning, from design to novel materials to customer engagement to community gathering. It is about our life in the end, a call to action to be built today, together, by us, with us.”

Our partnership aims to tap into this emerging market, creating new businesses, jobs, and commercial opportunities that will improve millions of lives. As the real estate sector evolves, the focus on building communities for like-minded individuals and creating proper infrastructure will play a critical role in shaping a new era of healthy longevity.

“Perhaps most importantly, we are collaborating to move from an aging society to a longevity society that embraces the opportunities of each life stage,” said Sylwia Ziemacka of SHHA. “Through this partnership, we will showcase the vital role of the housing sector in supporting well-being, social connection, and purpose throughout life. To achieve this, we will host a series of webinars and events aimed at key players in the senior housing and healthcare sectors.”

The first of these events, an exclusive SHHA In-Depth webinar, will be co-hosted by SHHA and NICA on January 17, 2025. This session, titled “ Investing in Longevity: The Future of Senior Housing,” will explore the transformative potential of senior housing and healthcare infrastructure in promoting longevity and enhancing the quality of life for older adults.

This thought-provoking session will challenge outdated narratives around aging, focusing on how innovative real estate and community development can contribute to longer, healthier, and more connected lives. Key discussion points will include:

• The emerging “longevity society” and its significance for senior housing and healthcare.
• How thoughtfully designed housing and community infrastructure can positively impact physical, mental, and social well-being.
• Case studies demonstrating the direct link between senior housing design and improved quality of life.
• Future opportunities for the real estate and healthcare sectors to meet the growing demand for age-friendly, wellness-centered environments.

Together, SHHA and NICA will pioneer new approaches in the senior housing and healthcare sectors, ensuring that people not only add years to their lives but life to their years. “Our collaboration with NICA emphasizes the importance of not just living longer, but living longer in health,” added Ron van Bloois, Chair of the SHHA . “Our sector is dedicated to enhancing quality of life by developing communities that support well-being and connection. The impact of senior housing goes beyond just providing accommodation; it’s about building environments that foster social engagement, health, and a better quality of life.”

Poland is facing dynamic demographic changes that will shape the future of the market of senior housing and accompanying private long-term care services. With an ageing population and changing attitudes to elderly care, the sector is gaining increasing investor interest. During the event “Senior Living & Care Market in Poland”, co-organised by CMS in Poland, the consulting firm Savills, and the Senior Housing & Healthcare Association (SHHA), experts stressed that on the one hand, these changes increase the investment potential, but, on the other, they highlight a number of challenges, including the systemic ones.

“Demographic and economic changes leave no illusions – the need for care for seniors in Poland will grow. We are facing a situation where investment in the senior living sector is no longer an option but a necessity”, said Anna Wiśniewska, advocate and counsel in the Real Estate and Construction practice at CMS, as she opened the discussion by highlighting the main factors driving the market forward.

Although the phrase “senior living” may seem obscure, there are already operators on the Polish market who operate this type of commercial project. Despite the differences in definitions, they can be simplified by dividing them into the following two types: independent living, which is housing for the elderly that is adapted to their needs, with the possibility of additional support services such as cleaning, catering, nurse support, and assistance with transport to doctors and hospitals; and nursing homes, which provide professional, round-the-clock and comprehensive care.

“For the correct legal qualification of an investment project targeting the needs of older people, the scope of the services offered to clients and patients is crucial. Projects consisting of self-contained residential units or non-residential units for sale or rent to the elderly will not be fundamentally different from typical PRS (private rented sector) projects”, Anna Wiśniewska of CMS stressed.

Key figures presented by Jacek Kałużny, Head of Operational Capital Markets Department at Savills Poland, indicate that: “Poland is ageing at a rapid pace. Currently, 20% of people in the country are 65 or over, and in 20 years’ time, this percentage will rise to almost 30%. This means that the need for housing and care for seniors is only going to grow, and we need to be ready for this growth.” In his presentation, Jacek Kałużny highlighted that, currently, the market for seniors’ housing and facilities in Poland is still at an early stage of development, with a low rate of availability of beds in private facilities—less than 2% for people over 80 years old. The Head of the Operational Capital Markets Department also pointed out that the shortage of qualified operators ready to manage such projects in Poland, which requires a more comprehensive approach to the development of the sector, still poses a challenge.

Growing needs of investors

The experts emphasised that the senior care market in Poland has huge potential for growth, especially in the area of long-term investment projects. One of the biggest challenges is the lack of large, available investment portfolios. The existing market is fragmented and the relatively small individual projects scattered around Poland do not attract the interest of international investors who are looking for “economies of scale”. Despite growing demand, care infrastructure for seniors remains insufficiently developed in Poland.

“Poland has the greatest potential in the healthcare real estate market in Europe, but the pace of development of care infrastructure does not yet reflect this. The trends are promising and I am pleased to see that the Polish care home sector is developing dynamically. We are also seeing growing interest in seniors’ housing in the independent living and assisted living segments, which, as in the West, may be developing the fastest in Poland”, noted Dr Andrzej Lejczak, President of the Polish Chamber of Nursing Homes (KIDO).

There are currently around 900 private care facilities, with 50 new ones opening in 2023. In the first quarter of this year, a further 13 homes were established, offering 500 new beds, and in the second quarter, a further 15 facilities were scheduled to open, which would provide an additional 600 places, Dr. Andrzej Lejczak pointed out.

Maciej Piotrowicz, who heads the Polish branch of Nrep, the Scandinavian real estate investor, emphasised the importance of operators and business partners for the further development of the market: “In order to increase the growth dynamics of this segment, we need strong operational partners who can effectively manage operations in ongoing projects. Investors are looking for stable models of cooperation, within which it will be possible to prepare business plans for the phase of long-term management of facilities.”

Without adequate support for care workers, it will be difficult to provide seniors with the highest quality services. “One of the biggest challenges that care homes in Poland face is a lack of qualified staff. Increasing demand for professional care requires not only the development of infrastructure, but also investment in human resources”, added Beata Leszczyńska of emeis Polska, which offers around 1,500 places in care homes and rehabilitation clinics, including assisted living flats in the Rezydencja Na Dyrekcyjnej senior living complex in Wrocław.

Changing preferences of seniors

Investors interested in investing capital in the sector see increasing potential in creating places that not only provide a place to live, but also enable seniors to pursue their interests. Such projects are also being developed by ORIGIN Investments, which offers serviced flats with access to a wide range of services, from activation, entertainment and recreation to support in day-to-day functioning and access to medical and rehabilitation services. “Our projects show that seniors are increasingly looking for solutions that offer not only a sense of security and access to a variety of services, but also the opportunity to lead an active lifestyle”, said Karol Bulenda of ORIGIN Investments.

The change in attitude towards the care of seniors is also evident in the decisions taken by families. Just a decade ago, the dominant model of care was home care, but now more and more families are opting for specialised facilities that offer comprehensive care. This not only eases the burden on families, but also ensures that seniors receive professional assistance in a comfortable environment. As shown in the ARC Rynek i Opinia survey conducted in 2024, in 10 years the percentage of people who are prepared to care for their loved one at home has decreased from 52% to 37%, while the group of those who would choose a specialist care centre has increased (23% in 2014 vs. 34% in 2024).

“Observing the growth in the senior living sector in the US, we see that the answer to the changing needs of seniors is new housing models, such as “active adult”, which focus on active, healthy and independent living in old age. Poland has the opportunity to build on this experience and create its own locally adapted solutions”, emphasises Sylwia Ziemacka of the Senior Housing & Healthcare Association (SHHA).

The expert added that today’s seniors are a diverse group whose needs are changing dynamically, and aging can no longer be viewed through the lens of traditional solutions such as care homes. “We need to change our thinking from an ‘ageing population’ to a ‘longevity population’ and focus on a quality of life that is longer, but also fuller and healthier. In Poland, we have an opportunity to develop this sector dynamically, but a good understanding and education of society about modern housing solutions for seniors will be crucial”, Sylwia Ziemacka added.

Challenges for investors – infrastructure and location

Piotr Fijołek, co-managing partner at Griffin Capital Partners, highlighted the challenges related to infrastructure and the availability of investment plots: “There is still a lot of competition in Poland for the best locations, which is affecting and will continue to affect the pace of investment development in the senior living sector. Investors often have to choose between more profitable projects, such as PRS or student housing, and investments in senior homes, which are more complicated in terms of operational management.” He also mentioned that the lack of sufficiently large investment portfolios is limiting the market’s ability to grow rapidly, requiring a change in the approach to investment and operators in the senior living market.

In this context, it is worth noting the potential of public-private partnerships (PPPs). “The organisation and provision of care services, including specialised services, at the place of residence falls within the scope of social assistance, which is the municipality’s own task. The PPP formula can help municipalities to meet the growing demand for senior care, while leveraging the expertise and resources of the private sector”, Anna Wiśniewska adds.

Beata Leszczyńska pointed out that the senior living market in Poland has huge growth potential, but the key is to create long-term, stable business models. Investors need to understand that the sector requires time and commitment, but can yield significant benefits, both financially and socially.

A new approach to investment risk management

The debate participants pointed out that one of the main barriers to entering the Polish market is regulatory uncertainty and the lack of a developed model of cooperation with operators. The use of long-term lease models can reduce risk for investors, which is standard in the more developed markets such as Sweden.

“We are seeing increasing interest from both local and foreign investors, who see long-term growth prospects in the sector. However, it is crucial for them to ensure operational stability and to find experienced operators who can effectively manage these investment projects”, said Jacek Kałużny of Savills Poland.

The experts also noted that Poland needs support in shaping new business models and tax regulations to make investing in the senior living sector more attractive. Reducing VAT costs could significantly lower barriers to entering the market and accelerate market development.

Outlook

The outlook for the senior living market in Poland is promising. “Investment in seniors’ healthcare and housing is a sector that will go from strength to strength in the coming years. However, we need to ensure that appropriate regulations and tax incentives are developed to facilitate such projects”, concluded Beata Leszczyńska of emeis Polska.

Opportunities for the sector

Poland faces a major opportunity to develop the market of housing and care services for seniors. Changing demographics, an ageing population, with the proportion of people over 65 projected to rise to 30% by 2050, and rising expectations of seniors’ quality of life are creating a solid foundation for future investments that can bring significant benefits to both investors and society. In addition, a growing understanding of needs, education of society about modern housing solutions for seniors, and support from the government and local authorities through various programmes, will also encourage the development of this sector in the near future.

Interview with Jussi Rouhento, Fund Manager, Managing Director in Finland, Northern Horizon.

What emerging trends do you see as having the greatest impact on the seniors housing and healthcare market, and how are you strategically positioning your investments to capitalise on these trends?

Over the recent years, we have seen a growing investor interest in responsible investing and creating long-term social value in the Nordics. We are very well positioned to create value for investors in this segment.

Northern Horizon was a true pioneer when we launched our first closed-end healthcare fund in 2007. In March this year, we successfully converted our third healthcare fund into an evergreen fund with the scope to invest not only in elderly care homes but also in other social infrastructure properties.  

Social infrastructure is an essential part of the welfare systems in the Nordic countries, and the assets are used for the provision of a broad range of social services from daycare through education to senior housing and care services.

We see significant opportunities for investments because while private ownership of social infra real estate is still limited in the Nordics, we are seeing increased privatization.

One of our biggest competitive advantages is our highly specialized healthcare team with longstanding relationships with developers and investors to municipalities and care providers and their ability to source an attractive pipeline that fits our investment strategy.

How do you assess the long-term financial viability and growth potential of seniors housing and healthcare investments?

Our healthcare and social infrastructure investment products are based on the demographic trend of a rapidly ageing population in the Nordics. This has led to a structural shortage of care beds and long-term estimates predict a need for 75,000 net new beds in the Nordics by 2030.

Another trend is the increased budgetary pressure. Welfare spending in the Nordics is high because the population is becoming older and more costly, and many municipalities are struggling with limited resources to fill their increasing social responsibilities. As a result, they do not have the financial ability to build and maintain social infrastructure assets as they did before, so they are looking for other ways to provide the buildings.

At the same time, we are seeing much more interest in social assets from institutional investors and international investors. Primarily because the segment has proven to be quite resilient to economic instability and, also because investors are increasingly focused on the social and environmental impact of their investments. Investing in social infrastructure assets offers the prospect of a stable return and at the same time helps to solve a growing societal challenge in the Nordics.

What do you see as the key challenges facing the seniors housing and healthcare sector in the coming years?

A trend that may impact the senior housing and care home sector in the Nordic region is the shortage of healthcare professionals. Governments are increasingly responding to the challenges through redefining how and where patients receive care, to implementing smarter workflows and increasing digitalisation and the use of AI.

What are your development plans for the coming years?

The main focus for us right now is of course to expand the seed portfolio of the new, evergreen fund. The fund currently has 63 assets and we expect the portfolio to grow continuously in all the target countries with capital from existing and new investors.

It is key for us to provide modern, high-quality properties that meet the needs and expectations of the citizens and the municipalities, as well as our tenants who provide the care services. So we continue to monitor the shifts in demand for new senior housing concepts across the Nordic countries. We are seeing a growing interest among seniors in the 55-75 age group who would like to leave their own individual home earlier in life and move into senior housing, even hybrid concepts with some services included and clinics nearby.

How do you balance social impact considerations with financial valuation metrics in your investments, and how do these factors influence your decision-making process (e.g., capital flow discussions)?

The value proposition of our healthcare investment products is a potential for long-term capital growth and a commitment to help solve a societal challenge. As such, social impact is embedded in the funds’ objectives.

Both our healthcare funds are aligned with SFDR Article 8, and ambitious sustainability targets have been set for the properties such as net zero operational carbon by 2030.

As a result, environmental responsibility and ESG measures are a key part of the decision-making process concerning a specific investment opportunity.

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Interview with Jan-Bastian Knod, International Partner, Head of Residential Investment Germany, Head of Healthcare Advisory, Capital Markets, Cushman & Wakefield

What emerging trends do you see as having the greatest impact on the seniors housing and healthcare market?

The senior housing and healthcare market in Europe is set for significant changes due to emerging trends, which are outlined as follows.

One key trend is the rise in interest rates, which has reduced investment volumes. In 2023, nursing home transaction volumes dropped to just over €4 billion, a 35% decline from the previous year and a 50% drop from 2021. This reduction is due to cautious investment attitudes and the gap between seller and buyer price expectations. Additionally, inflation has led to significant increases in operational costs for operators, further weakening the market. The prime yield of nursing home assets increased by 50 to 100 basis points in 2023, with transaction yields below 5.00% remaining rare, setting the prime yield for Q1 2024 above 5.00% in many European markets.

However, other trends are continuously driving innovation and strategic investments, shaping a more resilient and attractive market. Sustainability is pushing for green building practices and energy efficiency. Developers are adopting sustainable materials and systems to meet regulatory demands and attract eco-conscious investors, leading to long-term savings and increased property values. Regulatory changes are also mandating improved accessibility and inclusivity, requiring design modifications such as ramps and wider doorways to accommodate individuals with disabilities.

The integration of healthcare services within senior living environments is becoming more common, with facilities incorporating spaces for medical offices, telehealth and on-site clinics. This enhances property value by offering comprehensive care options on-site. There is also a growing emphasis on wellness and preventative care, with communities integrating wellness programmes and fitness facilities to promote healthy ageing and improve resident well-being.

In summary, while rising interest rates and inflation pose challenges, trends in sustainability, regulatory compliance, healthcare integration, and wellness initiatives are driving the transformation of the senior housing and healthcare market in Europe, making it more resilient and attractive for future investments.

How do you assess the long-term financial viability and growth potential of senior housing and healthcare investments?

Nursing care is one of the most significant growing markets and serves as essential social infrastructure, forming the backbone of each economy. Due to demographic changes and the resulting ageing population, the senior living market is becoming increasingly important in property investment. With a significant rise in the number of people over 65, this demographic shift creates sustained demand for senior housing and healthcare services. As life expectancy increases, the need for long-term care and healthcare services also rises, supporting long-term demand. Senior housing and healthcare facilities often have long-term leases and stable occupancy rates, providing reliable income streams. Particularly, nursing homes benefit from government programmes that ensure income for operators.

Following the re-pricing that occurred in 2023, the market is expected to become dynamic again in 2024. We anticipate ongoing stabilization of the market, particularly in operational performance of healthcare operators.

What do you see as the key challenges facing the senior housing and healthcare sector in the coming years?

The senior housing and healthcare sector faces several challenges in the coming years that impact its overall stability and growth. One primary issue is the increasing demand for skilled healthcare professionals, including nurses, caregivers and administrative staff. The supply of qualified personnel is not keeping pace with this demand, leading to high turnover rates and the necessity for continuous training, which exacerbates operational challenges and strains resources. Another significant challenge is the constantly evolving landscape of healthcare regulations. Facilities must remain compliant with federal, state and local laws, which include patient care standards, privacy laws, and safety regulations. These regulatory changes often result in substantial cost increases for operators, directly impacting profitability and necessitating ongoing adjustments to operational practices.

Additionally, integrating new technologies such as electronic health records, telemedicine, and advanced care monitoring systems is crucial. Both operators and users must adopt and effectively utilize these technologies to enhance care quality and operational efficiency, requiring significant investment and training. Moreover, seniors and their families are increasingly demanding higher standards of living, including improved amenities, personalized care, and more lifestyle opportunities. Meeting these evolving expectations necessitates operators to innovate and invest in enhancing their service offerings and facility standards. Addressing these challenges requires a comprehensive approach that includes strategic planning, investment in workforce development, embracing technological advancements, maintaining regulatory compliance, and focusing on delivering high-quality, personalised care. Successfully navigating these issues will be essential for the long-term viability and growth of the seniors housing and healthcare sector.

Do you expect more capital to come into the sector?

There is a lot of capital available for investments in nursing homes Europe-wide. Demographically driven demand, sustainable cahflow and therefore great return stability are key attractions for nursing home investors. The nursing care sector is experiencing significant growth and is considered essential social infrastructure, playing a crucial role in supporting every economy. There are many green shoots of optimism. We leave behind a difficult 2023 for nursing homes, but we are expecting investment to recover in 2024.

What attracts investors to this asset class? 

Investors are increasingly drawn to the senior living and healthcare market for several reasons. Firstly these facilities often provide stable cash flows due to long-term leases and consistent occupancy rates. Moreover, healthcare is deemed an essential service, making investments in this sector resilient to economic downturns. Government support further stabilises revenues for operators and investors. Ageing facilities offer value-add opportunities, enticing investors to improve and upgrade properties. Furthermore, there’s a growing investor interest in environmental, social, and governance (ESG) factors, with investments in sustainable senior living and healthcare facilities aligning with these principles. Lastly, the long-term growth potential of the sector, fueled by the continuous ageing of the population, makes it an attractive investment option for those seeking stable returns over time.

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