The current market situation offers the opportunity to develop a new socially based asset class by investing in age-appropriate residential real estate, also in combination with daycare centres or the development of social housing and medical centres. In the next 15 years, there will be an urgent need for 160,000 missing nursing beds. The corresponding offer of project developers and experts in this area is low compared to the demand, since the real estate developers are currently focusing more on residential real estate and/or traditional commercial real estate. This problem can be solved through investment in older nursing homes or hotel properties in need of renovation, which can be retrofitted or rebuilt to create new forms of age-appropriate housing and care in line with the current needs of residents and operators.
The social housing market and social welfare facilities will undergo dynamic consolidation in the future as a result of economic and legal changes. The industry urgently needs to be institutionalised in order to grow through focused capital and know-how and if it is to weather the future challenges of the market. Specifically, SGI Health Care AG plans to keep nursing homes, health centres and assisted living properties in their portfolio and to promote innovative, future-oriented concepts of property management in these areas. Along this line, investment participation in operating companies would also be possible in the future. New construction projects as well as real estate for revitalisation or existing properties with potential for expansion are worth considering for the real estate portfolio. Furthermore, the focus is on senior citizen-friendly residential properties, which is why investments in assisted living, disabled-friendly living and selective daycare centres are possible.