Investor confidence high in needs-based care market, says Christie & Co

Christie & Co has said investor confidence remains high in the care market despite a challenging operational environment and Brexit.

The specialist business property adviser gave an update assessment on the market outlook in its half year review following publication of its Business Outlook 2019 report in January.

Richard Lunn, Managing Director – Care at Christie & Co, (pictured) said: “The first half of 2019 has been a busy period with strong demand being shown across the market spectrum by a wide range of participants, albeit some larger processes have been delayed by Brexit uncertainty.”

Christie & Co said investor activity remained high with demand seen from across the industry with private equity, REITs, regional operators and corporate groups looking to consolidate, along with yields continuing to compress.

The property adviser highlighted Impact Healthcare REIT’s purchase of four sites as evidence of further consolidation (see Impact Healthcare REIT announces £21m MMCG care home acquisition).

Michael Hodges, Managing Director – Healthcare Consultancy at Christie & Co, added: “Healthcare remains a very attractive sector to invest in for a wide variety of funds and these fundamentals are unlikely to change given the very strong underlying demographic trends. All the ingredients are in place for a strong second half although there remains a risk that larger processes may continue to stall until there is clarity over the Brexit outcome.”