Operator credit
The single most important factor. A healthy rent cover carries a far better multiple than a group in restructuring.
Asset classes · Healthcare
Healthcare & assisted living
In care real estate investors are not buying a building; they are buying an operator with a building around it. That is where the risk sits — and the value.
The demographic tailwind is undisputed. Even so, the sector has suffered: operator insolvencies, staff shortages and stalled care-rate negotiations have made buyers cautious.
That does not mean nothing sells. It means operator due diligence is now the centre of the process — occupancy, staffing ratios, care-rate history, annual accounts. Assets with a stable operator still achieve good prices.
We approach specialist social infrastructure funds, family offices and operators looking to buy their own site into the balance sheet.
What we look at first
- Operator accounts and occupancy history
- Rent cover against EBITDAR
- State care law: single-room quota and grandfathering
- Care-rate history and pending negotiations
- Repair obligations under the lease
Key figures
- Lot size
- EUR 10 – 400m
- Typical buyers
- Social infrastructure funds, family offices, operators
- Pricing basis
- Lease, operator credit, occupancy
- Contract form
- Lease, usually 20 – 25 years
- Timeline
- 4 – 6 months
Value drivers
What moves the price here
Rent cover
If the rent exceeds what the site earns, the lease will fail sooner or later. Buyers run that maths — so do we, beforehand.
State regulation
Single-room quotas and transition periods determine future capex and therefore price.
Location quality
Catchment, competition and availability of care staff — the last of these is now often the tightest constraint.
Process
How a sale runs in this segment
- Step 01
Operator analysis
Accounts, occupancy, staffing and care rates over the last three years.
- Step 02
Asset review
Building condition, room mix and compliance with state care law.
- Step 03
Valuation
Multiple based on rent, remaining term and cover, plus a scenario for an operator change.
- Step 04
Buyer approach
Specialist funds, experienced family offices and operating groups.
- Step 05
Closing
Coordination with operator, supervisory authority and the lending bank.
From practice
What we see in real deals
Plan for an operator change early
Buyers always ask who could take over if the current operator fails. Naming two credible alternatives changes your negotiating position.
The lease beats the building
A twenty-year-old home with a clean lease and stable occupancy sells more easily than a new build with a struggling operator.
Get the operator's numbers
Almost nobody bids without insight into occupancy and results. Agree disclosure with the operator before the process starts.
Questions
What owners ask us
The points owners raise before a mandate — answered the way we would in a first call.
Do you also sell assisted living?
Yes, often combined with a care home on the same site. The buyer universe largely overlaps.
What if the operator is in trouble?
Then we discuss operating alternatives first and a sale second. Selling in the middle of an operator crisis destroys value.
How long does the process take?
Four to six months. Operator due diligence takes longer than in other asset classes.
Asset classes
What we cover
We advise on real estate and corporate transactions from EUR 20m across Europe, with a clear focus on the DACH region. Every asset class has its own buyer universe – these are the segments we work in most often.
Thinking about selling in this asset class?
Send us the key figures — you get an honest read on price and buyer universe.