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Handle with care: the challenges and opportunities of care home investment in the current climate
July 13, 2022 @ 12:30 pm - 1:30 pm
In theory, care homes should be a good place in which to be invested right now. Long inflation-linked leases are more attractive than ever and the need for care doesn’t go away in a recession. But that doesn’t mean all care homes will be good investments. High inflation is heaping pressure on operators and as the Orpea scandal in France shows, a lot can go wrong.
Join React News’ analysis editor Guy Montague-Jones and a panel of leading experts as we explore the opportunities and challenges in care home investment in today’s market. Among the questions they’ll consider are:
- Inflationary environment and impact on care home operators’ profitability
- Rising yield environment and impact on care home cap rates, and operators’ balance sheets
- Labour shortages and impact on (i) care home occupancy rates and (ii) profitability
- Staffing issues and related scandals across the continent
- The importance of the physical quality of real estate in care homes.
Panellists
Julian Evans
Head of Healthcare, Knight Frank
Since 1994, Julian has concentrated
on the valuation, acquisition and disposal of trading businesses and
fixed income.
He specialises in healthcare, now annually advising
on approximately £12bn of property.
Julian acts for corporate and private operators, private equity, lenders, institutions and funds in the valuation and brokerage of corporate and fixed-income portfolios. These comprise care homes, hospitals, surgeries,
schools, RVs and development throughout the
UK and Europe.
Knight Frank’s Healthcare team has won numerous awards, including:
• 2022 HealthInvestor’s Consultant of the Year – Transactional
• 3 x winner of HealthInvestor’s Healthcare Property Consultants of the Year
• 2021 winner of HealthInvestor Deal Maker of The Year
• 9 x winner of AI’s Global Excellence Awards – Most Outstanding Healthcare Property Advisers.
Edoardo Gili
Analyst, Green Street
Edoardo covers
the pan-European healthcare and tower sectors for Green Street’s research team. He has launched new coverage of several companies, among them Aedifica and Cofinimmo, and
has co-authored thought leadership reports on environmental considerations in the property space.
Before joining the team in 2021, he worked in Green Street’s Advisory Group, providing strategic advice
and corporate finance solutions
to numerous companies and investors in commercial real estate.
Before joining the firm in 2017, he worked at Duff & Phelps where he focused on complex asset valuations, and at PwC as an auditor.
Edoardo has degrees in economics from both the Université Catholique de Louvain and Maastricht University. He is a chartered financial analyst (CFA). His native language is French and he also speaks Italian.
Kenneth MacKenzie
CEO, Target Healthcare
Kenneth MacKenzie founder and chief executive of Target. He is a chartered accountant with more than 40 years’ business leadership experience, with the last 15 years in healthcare. In addition to his responsibilities as chief executive, Kenneth leads the creation and management of Target’s client funds, and oversees fundraising and investor liaison for the group.
In 2005 he led the acquisition of Independent Living Services, Scotland’s largest independent domiciliary care provider, putting in place a new senior management team before exiting via a disposal to a private equity house.
Before his involvement with ILS, Kenneth negotiated the proposed acquisition of a UK independent living business in a JV with US care home operator Sunrise Senior Living.
Kenneth has also owned businesses in publishing, IT, shipping and accountancy sectors, and holds several pro-bono charitable roles.
Xavier Cheval
CEO, Icade Santé
Xavier Cheval has been Icade Santé’s CEO since 2019. Icade Santé is a €7bn healthcare REIT subsidiary of the French listed company Icade. Xavier began working at Icade in July 2011 after helping to launch the healthcare property business as a consultant. He served successively as investment manager and then chief investment officer.
As part of his responsibilities, he oversees the management of one of the largest portfolios of European healthcare real assets, accross five countries, and strives to create successful long-term partnerships with Icade Santé’s tenants.
Xavier began his career at EY in 2005. He graduated from École Centrale Paris in 2005 with a master’s degree in engineering. He also holds an MBA (2016) from Insead Business School.
Jeremy Richardson
CEO, Runwood Homes Group
Jeremy recently took up the role of Chief Executive of the Runwood Homes Group. Privately owned Runwood is one of the UK’s largest care home businesses with 76 services operating in England and Northern Ireland, with a number of new developments under construction. Until the end of March Jeremy was the Chief Executive of Four Seasons Health Care Group (‘FSHC’), one of the four largest care home operators in the UK. He was appointed to the role in December 2019, having previously led brighterkind, an award winning stand alone care business, that was part of FSHC. For much of the last two years, Jeremy has been at the forefront of the covid crisis, leading Four Seasons through the pandemic, and acting as a voice for the wider social care industry with multiple media appearances.
Jeremy’s professional background is a combination of professional services, private equity and management consulting and subsequently entrepreneurship in the hospitality sector. After stints at NatWest Ventures, now Bridgepoint Capital and Bain & Company, along with a colleague he set up Kew Green Hotels, taking the business from start up to become Europe’s biggest multi franchise hotel company, operating the Holiday Inn, Express by Holiday Inn, Courtyard by Marriott, Days Hotel and Crowne Plaza brands over a period of 9 years. Kew Green was eventually successfully sold to Chinese operator, HK CTS Metropark Hotels for a sum in excess of £400m. Jeremy was subsequently appointed Executive Chairman of Menzies Hotels, where he led the restructure and successful sale of the regional hotel group before joining brighterkind.
As well as being CEO of Four Seasons, Jeremy is the senior Non Executive Director of the Goodwood Estate, home to the world famous Festival of Speed and Revival motor racing meetings.