USD 800 million refinancing in UK’s biggest recent healthcare deal

In this issue:

• Prospects and peculiarities within healthcare real estate
• The commercial case for making buildings more sustainable
• Deep-dive into ESG with Deepki Double

Prospects and peculiarities within healthcare real estate with Carrie Hiebeler

Following their recent expansion into Europe, Greene Park Capital’s Founder and Managing Partner, Carrie Hiebeler, sat down with GRI Club for an exclusive interview to discuss the burgeoning opportunities and unique challenges within healthcare real estate.

• The Covid-19 pandemic has accelerated the sector's evolution, emphasising technology, data, consumerism, and ESG considerations.?

Carrie notes the differences between the US and UK healthcare sectors, highlighting the robustness of asset classes such as rehabilitation and senior living in the US, contrary to the UK. Meanwhile, she notes the great potential in the UK for private capital to collaborate with public healthcare systems.

• Despite the sector's stabilised cash flows and strong ESG components, she expressed concerns about the underfunded infrastructure in these regions.?

Looking ahead, Carrie anticipates significant transformations driven by telemedicine, AI, and tailored healthcare experiences, with a growing focus on drug manufacturing labs and life sciences integration.

?? Read the full interview on the GRI Hub HERE

In recent healthcare real estate news, Medical Properties Trust (MPT), a prominent US-based healthcare real estate owner, has secured a GBP 650 million refinancing deal for its UK hospitals portfolio.?

• The agreement involves 27 hospitals operated by Circle Health on long-term leases and is being led by Song Capital with support from investors including Aviva, Canada Life, and Phoenix Group. The USD 800 million refinancing marks one of the largest recent deals in the UK healthcare sector.

Meanwhile, Christie & Co has facilitated the sale of a development site in Gravesend, Kent, previously home to a local pub, now set to become a 75-bedroom care home. The project by Frontier Estates includes en-suite facilities and luxury amenities.

For more on the growing appeal of alternative assets, don’t miss out on Europe GRI 2024, where real estate players from around the world, including investors, lenders, developers, and industry leaders, will gather for two days of exclusive roundtable investment discussions, pre-scheduled meetings, and soft introductions in Paris on September 10th-11th.

?? CLICK HERE to find out more and register to attend!

JLL presents the commercial case for making buildings more sustainable

As part of our ongoing thought leadership initiative, GRI Club is proud to present the report "The Commercial Case for Making Buildings More Sustainable" from JLL, which emphasises the urgent need to address climate risks and satisfy the growing demand for sustainable spaces by upgrading building infrastructure and operations.

• Key insights include the impacts of climate risks on urban areas, the rising demand for sustainable buildings driven by corporate objectives and employee expectations, and the financial and regulatory pressures influencing the market.

Explore the full JLL report and discover how to future-proof investments by embracing sustainable building practices, practical steps for decarbonising buildings, and case studies from industry leaders.

?? Access the report via the GRI Hub HERE

Deep-dive into ESG with Deepki Double

Even more thought leadership content this week, now from Deepki sharing an article on ‘Greenwashing in ESG reporting’ and a deep-dive into ‘Carbon Accounting’ - vitally important subjects given the ever-growing focus on ESG and sustainability in real estate.

• The PwC’s Global Investor Survey 2023 revealed high investor scepticism towards corporate sustainability reporting, reports Deepki, emphasising the need to combat greenwashing. Greenwashing involves misleading claims about sustainability, which erode trust and distort market information. Related issues include greenhushing (underreporting progress) and greenwishing (setting unrealistic goals).?

Deepki emphasises the importance of high-quality ESG data in mitigating greenwashing risks and enhancing transparency in sustainability reporting, as well as advocating for robust data collection, management, and traceability processes to ensure the accuracy and reliability of sustainability claims.

?? Read ’Greenwashing in ESG reporting’ HERE

• In a related piece, Deepki addresses how carbon accounting is essential for companies aiming to manage and reduce their emissions, enabling them to measure, monitor, and report carbon outputs. Accurate carbon accounting helps identify emission sources and informs strategies for reducing environmental impact.?

Learn more about why companies require tailored approaches, such as corporate or portfolio-level reporting, as well as how to implement comprehensive decarbonisation strategies to achieve net-zero goals and enhance asset value.

?? Read Carbon Accounting by Deepki Here

Other News ??

?? Europe’s Debt-Laden Real Estate Firms Confront End of Easy Money

?? Europe’s real estate assets favoured by global investors, Japan funds as distress creates ‘opportunistic’ deals?

?? European Boom: Success Factors In The Real Estate Market And Key Strategies For Investors?

?? Industrial properties in Europe offer opportunities

?? Madrid has the fastest rising house prices in Europe, with 10.6% increase fuelled by Latin American money, while Paris property drops?

?? German building workers strike adds to gloom in construction industry

Corporate Radar ??

?? Blackstone completes purchase of $1bn loan portfolio from pbb

?? CPP Investments further reduced real estate holdings in FY 2024

?? Works begin on Panattoni Park Gdansk City Airport

??? Azora acquired Praia d’El Rey Resort in Obidos

??? Housing giants Vonovia and LEG see bottoming-out of housing valuations

?? BuildingMinds lands in France?

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