Dublin, March 24th, 2020 – Rubicon Capital Advisors (“Rubicon”) is pleased to announce the sale of the 100% equity stake in the TLC Nursing Home Portfolio.
Rubicon acted as exclusive sell-side financial advisor to TLC Consolidated Unlimited. The purchaser is Orpea Group (ORP:FP), a French publicly-listed company with a global portfolio of over 1,000 dependency care facilities. This transaction represents a strategic move by Orpea to enter the Irish nursing home market.
The sale reached financial close in the first quarter of 2020.
Nursing homes provide long-term care to elderly and high dependency residents and form a key segment of social infrastructure. In the current low yield environment where infrastructure players are turning to core-plus sectors, the asset class offers largely government sourced and inflation protected revenues in a growing and capital-intensive industry.
The Nursing Home Support Scheme in Ireland is underpinned by the central Government as it ensures that elderly care is universally available regardless of means. The market also remains highly fragmented, presenting a significant opportunity for potential purchasers to establish a platform to acquire, build and consolidate assets.
The UK, Germany and France have seen the greatest level of investment volumes over the previous five years owing to significant demand for care homes within these countries (occupancy rates typically above 90%) and well-established healthcare infrastructure.
The French market has generally relied on informal and state care with roughly 53% of care homes owned by the state, however these restrictions on the private sector are beginning to be relaxed, meaning that investment into the French market is likely to increase.
Spain and Italy both have less developed care home markets owing to the emphasis on informal care, however Spain is expected to have the second largest over-80 population (surpassed only by Japan) in 2050, and investors are likely to seek to capitalise on the Spanish care home market and its comparative free market structure.
Across Europe, the sector’s robust growth fundamentals are driven by a widening demand-supply mismatch. The provision of elderly care has very high barriers to entry, due to its capital expenditure needs and the operational expertise required to ensure compliance with stringent regulatory standards. The high regulatory threshold, the continuously ageing global population and government support for this essential service has led to strong demand from infrastructure and other long-term investors.
About Rubicon Capital Advisors
Rubicon is one of the world’s leading investment banking firms focused solely on the infrastructure, energy & utilities sectors. With offices in Europe, the Americas and Asia, along with further expansion plans in 2020, the firm has a truly global reach. Since inception in 2011, Rubicon has closed on the sale, acquisition or refinancing of over 100 essential infrastructure, energy & utilities assets located across Europe, North America, Latin America and Asia with a combined enterprise value in excess of USD $50 billion. The firm is regulated by the Central Bank of Ireland and its U.S. affiliate is a member of FINRA and SIPC and registered as a broker-dealer with the SEC. Learn more about the firm at: www.rubiconcapitaladvisors.com and by following Rubicon Capital Advisors on LinkedIn and Twitter.
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