There are businesses that will never go out of style, such as a funeral home. No matter what happens, people will continue to die. In the case of Spain, something similar happens in nursing homes: people will one day grow old. Not only that, but if we take into account the population pyramid and retirement, baby boomThe future of housing is secure. The economy is a matter of two factors, supply and demand, and this sector has more and more applicants and a scarce supply. It’s something that many national and international investment funds have identified and are doing their part to create a quality offer.
According to JLL, the population aged 65 and over in Spain is 20 percent, or 9.5 million people. For all these people, there are only 390,000 beds in our country, and there are 25,000 more beds currently under construction. “Between 80,000 and 110,000 parking spaces need to be built.. In other words, demand is growing faster than supply can, despite private equity’s efforts to increase stocks,” said Juan Manuel Pardo, director of Living at the consulting firm that wrote the report.
A group of institutional mutual funds began to position themselves by buying and building from scratch when there was no product. Who are the major owners of nursing homes in Spain?
active health
Health Assets The North American fund was founded by Oaktree and Spanish Altamar, although shareholders later alternated. Now Abu Dhabi has a number of buildings managed by the state wealth fund Nationale-Nederlanden and CBRE IM: 40 operations between residences, clinics and hospitals; plus 11 under construction. This Spanish company with foreign capital has a growth plan to reach a portfolio of assets worth 1,500 million euros, including expansion in Europe: it landed in Portugal and recently in Belgium and is now looking for opportunities in Germany and Italy.
cofinimmo
Another pioneer is Belgian Cofinimmo, who has an alliance with Thor in Spain. It has 3,375 beds of such properties worth 304 million euros.. It has been in existence in our country since September 2019 and has built all its projects from scratch. Its assets are located in Utrera, Barcelona, u200bu200bBilbao, Sarriguren, Castellón de la Plana and Cartagena. Blackrock, the world’s largest fund manager, is behind this company, which is traded on the Belgian stock exchange. The total portfolio of this pan-European giant is 6,100 million Euros, meaning only 5% of its portfolio is in Spain.
cover
One of the Spanish companies in this real estate segment is the insurance company Caser. As explained on the corporate website, There are a total of 3 thousand 300 places, 23 of which are in 15 provinces.. They are found in A Coruña, Alava, Badajoz, Guipúzcoa, La Rioja, León, Lleida, Madrid, Málaga, Murcia, Pontevedra, Valladolid, Vizcaya, Zamora and Zaragoza. Caser is controlled by Swiss Helvetia, an insurance group operating worldwide since 2020.
Adriano Care
Founded by Spanish executive Azora, Socimi (real estate investment firm) Adriano Care is one of the most wealthy vehicles: Portfolio of 22 nursing homes with 2,875 beds (18 business assets and 4 developments)worth 230 million €. 255 more should be added to this figure in day centers. In 2022 alone, they invested more than 100 million in seven housing units with 885 beds. Its assets are scattered throughout the country: A Coruña, Palencia, Bilbao, Zamora, Madrid, Valencia, Lugo, León, Terrassa, Vigo, Alicante, Santander and Barcelona. There are several shareholders behind this company, but the most important are Pedro Alcaraz, founder of Goldcar car rental company; insurance company Mussat or Previsión Mutua de Aparajadores y Arquitectos Técnicos.
batypart
The Batipart fund has a resident subsidiary, Lagume. Although he took part in important operations, it is a great unknown. in 2017 It bought 16 assets from SARquavitae for 116 million and two years later bought two more assets from Domusvi.. Their residences are in Catalonia, Andalusia, the Balearic Islands, Madrid, Castilla-La Mancha and the Valencian Community.
Uctas Capital
This Luxembourgish investment manager owns a European-level investment fund in nursing homes. Given their headquarters, they lack a lot of transparency, even though they’ve reported some of their acquisitions. Threestones Capital landed in Spain in 2018 by purchasing an asset in the province of Barcelona. Nowadays, It has a total of 12 residencesWhat reached 1,335 beds In Leiro, Extremadura, Asturias, León, Barcelona, u200bu200bOviedo, Zaragoza, Cantabria, Ibiza, Burgos, Barcelona and the aforementioned Cambrils.
First Reim
Another of the major European funds in this real estate segment is Primonial REIM. French origin vehicle 12 residences, 4 mental health centers and a hospital in Spain. His most recent acquisition was the Jovellanos nursing home located in Gijón. next to the new Covadonga hospital. In communication about his recent purchase, he stated that they see housing as a market to grow, even though they currently account for more than 30% of their assets.
cabin
The investment holding company of Caprabo’s founders is one of the largest owners of housing for the elderly. in 2018 Capoel buys 840 beds in six residences in the Community of Madrid: Alcorcón, El Escorial, Carabanchel, Torrelodones and Colmenar Viejo. According to El Confidencial, they paid approximate value for these assets. 50 million €.
APG – Revenue Company
In recent weeks, several international funds have communicated their intentions to invest in nursing homes in Spain. The first is Dutch APG, which, together with the Catalan company Renta Corporación, will allocate 250 million euros to such assets. Under the name Wellder Senior Asset, this new tool will focus on buying and developing housing in towns with a population of more than 100,000, with surfaces between 4,000 and 7,500 square meters and between 80 and 140 beds for each centre.
Axa – Lar Group
The last person to report landing in Spanish nursing homes was the investment arm of French insurance company AXA. together with Grupo Lar, will invest 300 million euros in both residences and day care centers. Their initial development will be in Zaragoza, where they have purchased land for 4.6 million, where they will build a 270-bed residence, a mental health clinic, and a day care home.