A recent article highlights how the market for the acquisition of senior housing living facilities by large international investment groups remains active in 2015. For instance, it is being reported that Chartwell Retirement Residences, Canada’s largest owner and operator of seniors housing facilities, has entered into a definitive agreement to acquire five premier retirement residences in Ontario, Canada, for a total purchase price of $254 million. According to Chartwell’s Senior Management, “This transaction is fully in line with our strategy to expand our portfolio with new, high-quality properties, located in strong and growing markets.”
Other acquisitions are significantly notable, including those by the Ensign Group, which has opted to purchase various skilled nursing facilities in California, South Carolina, and Arizona as part of its long-term growth strategy. Such investment acquisitions bring Ensign’s “growing portfolio to 182 skilled nursing and assisted living operations, 29 of which are owned. Ensign’s portfolio also includes 15 home health agencies, 14 hospice agencies, three home care businesses and 17 urgent care clinics across 14 states.” Confirming its overall and long-term investment strategy, Ensign’s management has expressed “that the organization is actively seeking several additional transactions to acquire real estate and to lease both struggling and well-performing skilled nursing, assisted living, and other healthcare-related businesses.”
Highlighting the global trend by many investment firms toward the acquisition of senior living facilities is China, which currently has around 40,000 “senior homes,” which are similar to skilled nursing facilities in the United States. In terms of long-term investment strategies, the wealthy Chinese are looking the long-term investment viability of such senior-based housing where, “70% of China’s millionaires are interested in joining a high-end retirement community in the future, and 45% believe they will need these communities, according a report from Taikang Life and Hurun Report.” It is not surprise, that with the burgeoning and aging population of China, investors are looking to find investment strategies that will be based on a consistent demand.
Senior Housing providers are at a pivotal moment in time, where there are many providers taking economic advantage of the trends among senior residents, to seek more housing and care facilities. Cambridge Realty Capital is versed in a variety of investments in the senior housing market. Our experience and expertise make us a leader in the investment world.