The increase in life expectancy gives clinics a resilience in the face of crises. Due to their specialization, they are evaluated based on their operational performance and financial ratios. The strict regulations that govern them require in-depth legal expertise for their evaluation. They attract sustained interest, considering them as a safe haven in a field where security is paramount.
In a context of aging population, needs are increasing faster than supply. The valuation of an EHPAD depends on its location, the scarcity of supply and its operating conditions. The difficulty of obtaining the approvals necessary to open an EHPAD accentuates the shortage situation on the market, which makes it a secure product that investors appreciate.
EHPAD...!
Medicalized retirement homes, or accommodation establishments for dependent elderly people (EHPAD), are qualified as monovalent assets.
They provide not only an accommodation service, often similar to that of a hotel, but also care and medical assistance to residents.
Due to these characteristics of dependency and medicalization, EHPADs are subject to strict regulations, both in terms of their operation and their real estate.
In a context of an aging population, needs are increasing faster than supply. The valuation of an EHPAD then depends directly on its location and the scarcity of supply in its sector, but also on its operating conditions.
The difficulty of obtaining the necessary approvals to open an EHPAD accentuates the shortage situation on the market, which makes EHPAD walls a secure product that investors appreciate.
Nursing homes, or residential care facilities for dependent elderly people (EHPAD), are considered monovalent assets.
They provide not only an accommodation service, often similar to that of a hotel, but also care and medical assistance to residents.
Due to these characteristics of dependency and medicalization, EHPADs are subject to strict regulations, both in terms of their operation and their real estate.
What attributes characterize the "EHPAD" asset ?
According to INSEE, the population of seniors in France has increased by one million over the last ten years. This demographic change highlights a growing need for medical facilities for the accommodation of the elderly.
Despite this growing demand, the EHPAD sector generally remains in a situation of undersupply, with sometimes significant waiting lists in some establishments. However, this situation varies by region and requires individual analysis depending on the specific location of each establishment.
What are investors' expectations ?
EHPAD walls continue to attract investors who see this type of asset as a high-yield diversification real estate product. The demand for acquisitions is all the more significant as it concerns both lot-by-lot investments (EHPAD rooms) and acquisitions of entire buildings.
Given that EHPAD walls are alternative, monovalent and technical real estate assets, and that they are subject to strict regulations, an informed acquisition is necessary. Faced with the growing complexity of the valuation of EHPADs and in order to provide precise and reliable answers to our investors, our team is surrounded by dedicated professionals.
These professionals have specialized skills in different areas, whether technical, regulatory, market or financial analysis knowledge. Their expertise allows us to understand all the complex aspects related to the valuation of EHPADs and to offer advice tailored to the specific needs of each investor.
What are the main evaluation criteria for EHPAD ?
Nursing homes are considered to be monovalent assets. They are built for a specific purpose and their conversion to another activity is often only possible with major works. The value of the premises is therefore closely linked to the operating conditions, but it also depends on the characteristics of the establishment and its location.
• Location: Relevance of the location, local market value levels.
• Operation and occupancy: Lease, quality of the tenant, rent level, occupancy rate, GMP, turnover, EBITDAR, etc.
• Hotel data: Number of beds, rooms, surface area.
• Technical characteristics: Date of construction, compliance with standards, level of equipment. To evaluate nursing homes, our team uses evaluation methods based on the ability of the operation to support a rent in line with the profitability of the activity carried out.
A crucial indicator in this process is the GMP (weighted average Gir). By assessing the average level of dependency of residents accommodated in an EHPAD, the GMP makes it possible to determine the amount of public funding allocated to the establishment in question. In doing so, it offers an essential overview of the financial viability of the EHPAD and its capacity to generate stable income.
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- See also !
Healthcare real estate...!
Clinics
Rising life expectancy gives clinics resilience to crises, and they are attracting sustained interest as a safe haven in a field where safety is paramount...
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