Why do special rules apply to the transaction of healthcare properties and why is a lot of market knowledge required?

In daily valuation practice, the transaction of healthcare properties requires a differentiated methodology and knowledge of market data, risk potential and legislative framework conditions. After all, healthcare properties are also always management properties.

The following parameters must be taken into account:

  1.  Care homes can only be converted to a very limited extent.
  2. Legally regulated investment follow-up costs limit the amount of nursing home rents.
  3. New regulations in the state nursing home laws, such as the single room quota, must be implemented, leading to a reduction in the number of care places and thus to declining revenues for the operator.
  4. In the event of an operator insolvency, there is a risk of loss of rent.

But how can all parameters be correctly weighted, how can the market value of a healthcare property be reliably determined? TERRANUS offers both expertise as a healthcare real estate agent and experience as an operator.

If investors don’t want to be stumbling around in the dark and want to know exactly what the respective care property is worth on the market, there is no way around a complex analysis. This includes the evaluation of tens of thousands of data, as guaranteed by the TERRANUS analysis tools. The interpretation of this broad factual evaluation then enables a reliable valuation and thus a safe investment decision.