Consolidation is not just under way in the United States. In Europe and the United Kingdom, the acquisition market seems to be heating up. Cureus GmbH, based in Germany, has significantly expanded its healthcare real estate portfolio with the acquisition of 35 leased care homes and one under construction with a combined 3,750 beds with a portfolio value of about $733 million, or about $195,000 per bed.
This will bring the company’s total care home portfolio to 38 leased properties with 4,069 beds, 28 projects under construction with 2,743 beds and 70 additional projects in the planning stages with about 7,070 beds. All of these projects are scheduled for completion by the end of 2025 with an anticipated value of $1.77 billion.
The company plans on completing at least 20 new properties a year, and so far this year they are on track with 10 new facilities with 1,100 care beds and assisted living beds already under construction. This reminds us of the roaring 1990s in the United States when one company was opening one new assisted living community a week for a year. The difference is that Cureus does not manage the properties they finance and develop. Still, it is a very aggressive pipeline, even if they believe the demand is growing. We could have a repeat performance in the United States as we approach 2025 and some developers drool over the expected baby boomer demand.
