MARKET DYNAMICS SIMILAR TO PREVIOUS YEAR, VOLUME REMAINS WELL BELOW RECORD YEARS
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As in the previous year, the strong positive trend on the healthcare investment market from previous years was unable to be maintained in the first half of 2024. With a transaction volume of €568 million, the previous year's figure was missed by 14% and the 10-year average by around 47%. The “positive exceptional economic situation” caused by the coronavirus pandemic is thus increasingly receding into the background. On the other hand, the significant rise in financing costs and the challenging procurement of debt capital since last year have become a brake on activities on the healthcare investment market. A number of major insolvencies are also having a negative impact on transaction activity. Operator risk is therefore being monitored more closely again, particularly by risk-averse investors.
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The largest portfolio deal was the sale of three nursing homes owned by Vonovia in the Rhine-Main region. At €91 million, proceeds in the amount of the respective book value were realized. In addition, only one other transaction exceeded the €50 million mark: An ensemble of properties for assisted living in Baden-Württemberg was sold to a German family office.
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Against the backdrop of completed valuation adjustments and a slightly improved financing environment, the prime yield remained stable at 4.90% in the second quarter.