October 12, 2016
Hilda Martin

Private Equity Acquiring More Medical Real Estate

As we posted back in March, private equity as a group is buying significantly more medical real estate than they have previously. On a trailing twelve month (TTM) basis, they had been acquiring roughly $1B – $2B in early 2015. As of the most recent quarter, that figure stands at $4.7B, which is up almost 400%, as seen in the chart below which shows their acquisition volume of all medical real estate.

Private Investor TTM Buyer Volume

They also make up a greater percentage of overall volume. So far this year they represent 43% of buyer volume, up from only 21% in 2014. In recent years most of the activity has been made up of deals where the buyer is a real estate investment trust (REIT). Healthcare REITs have enjoyed a long run of comparatively low priced capital with ready access to various forms of debt financing. Although acquisition activity by this group is still very strong, they are making up less of the investment totals on an annual basis.

Buyer Composition All Medical Real Estate

 

Will these trends continue? The Revista Transitions Module allows you to search for transactions and see activity by investor type in addition to many other filters. You can find more info on this and other subscription tools here.