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Rehabilitation Clinics in Germany

24 November 2015

The recent successful acquisition of Median-Kliniken (valued at approximately € 700 million) by Medical Property Trust led to a change in ownership of 38 rehabilitation clinics. The operation has caused an abrupt shift in attention towards a market that was long considered as unattractive to investment. This follows years of consolidation, in the wake of costcutting laws in the 1990s, which in turn led to a broad wave of closures in the sector. However, since the middle of the last decade the outlook for the Rehabilitation Market has improved progressively.

Given demographic development as well as the increasing health awareness of the population, the German investment market for health and social real estates, including care homes, retirement homes and assisted living as well as rehabilitation clinics, is generally seen as a growing market. In contrast to other, more established asset classes, the market for rehabilitation services is mainly characterized by a non-transparent market with few valid key indicators and a complex regulatory framework.

This report, which was prepared in cooperation of CBRE Germany and the Healthcare department of BDO Germany, gives a short introduction into the functionality and the development of the market for rehabilitation services in Germany. Furthermore questions in terms of investments in the market will be answered such as funding criteria of banks, sustainable leases, realistic expected return and the expected investment amount. The report is completed by a list of recent transactions and by mentioning investment criteria.

Branch office healthcare management