Transactions are a matter of trust

There have never been better times to market healthcare real estate. Since 2010, low interest rates resulted in a rising prices. Ten years ago, purchase price factors ranged from 12-14, nowadays between 16 and 18. Against the background of an ever-increasing demand the market is set to grow. However, there is some uncertainty as to when interest rates will be rising again. As an investor of healthcare real estates – what can you do right now? We can assist you in the following tasks:

• Objective assessment of your real estate with NAI apollo healthcare: We create a free, rough assessment of the market value of your real estate or business. Our founders have been investor and operator of healthcare facilities such as in assisted living, outpatient care and nursing homes – therefore we know the different needs of operators and investors very well.
• Quick check of the operational concept and profitability:  We will take a look at your business and analyse your numbers. Our benchmark database will help us identifying the economic efficiency. Sample questions: Is the rent fully refinanced by care rates? Do you have too much staff, for instance in the kitchen: How many meals can be prepared by one full-time employee? What about management of your occupancy? And how does staff retention look like in your business?
• Selling mandate: We will get in touch with suitable, prospective buyers, whether for the real estate and / or the operating company. Often, a sale-and-lease-back procedure for the real estate can be structured by us: The real estate will be sold and, because of low interest rates, the rent of the remaining ownership of the business will decrease. We have a close contact to international investors and can control the entire selling process on your requirements.

 
Common mistakes selling your business: When engaging the services of consultants and brokers for selling a property, serious errors may arise, for instance:

• Mandating unspecialised agents and/or too small brokers and consultancy firms: Your property will only be displayed on the storefront window and/or sent to as much interested parties as possible in order to secure a commission claim. In addition, unprofessional firms ask for an unrealistically high brokerage fee, which will reduce the selling price of your real estate. When the property is already known on the market, a professional round of bidding is hard to organize. The selling process is uncontrolled and will take a long time. Meanwhile, your staff retention may worsen.

• Poorly prepared information memos and documents: Successful investors are always looking behind the scene and ask for relevant data (double room ratio, occupancy history, investment costs, nursing rates development and comparison with competitors etc.). The sustainable profitability is based on a reasonable level of rent, taking into account costs for reinvestments and maintenance. We are in close contact with institutional investors and know their investment criteria very well. By providing the relevant information we can therefore save valuable time and work.
  

Sebastian Deppe
Dipl. Kfm., Dipl. Grande Ecole, MSc
Managing Partner
Tel.             +49 (0)69 970505-0
Mail:         sebastian.deppe@nai-apollo.de
Twitter:  SebastianDeppe

Andreas Wende
Dipl. Kfm., MRICS
Managing Partner, COO of NAI apollo group
Tel.             +49 (0)69 970505-0
Mail:         andreas.wende@nai-apollo.de
Twitter:  AndreasWende