A total of 71 MEDIAN rehabilitation clinics valued
A 50/50 joint venture between two international investors, established in 2018, has refinanced its expiring seven-year loan agreement at a fixed interest rate of 5.1%. The non-amortising bond of €702.5 million with a term of 10 years is secured by a portfolio of German rehabilitation clinics. The clinics are operated by MEDIAN, the largest operator of rehabilitation clinics in Europe. The secured loan agreed in 2018 amounted to €655 million.
European real estate investment company Song Capital provided the financing with support from a consortium of global institutional insurance investors.
On behalf of Song Capital, Cushman & Wakefield Healthcare Valuation Advisory in Germany was mandated to carry out the valuation of the 71 rehabilitation clinics required for the new loan.
Max Köhler, Valuation & Advisory Sector Lead Alternatives at Cushman & Wakefield, comments: ‘We would like to thank Song Capital for their trust and cooperation in this unique mandate, which placed high demands on all parties involved due to its depth and specialisation.’ Max Köhler continues: "We see our role as valuers as creating transparency and security within the transaction. To this end, we analyse the economic fundamentals of the investment in detail, prepare the relevant key figures in a well-founded manner and clearly highlight the associated opportunities and risks." The current deal underscores the growing importance of healthcare real estate as an established and attractive long-term investment within the European market for alternative asset classes.
Jan-Bastian Knod, Head of Healthcare Advisory at Cushman & Wakefield, adds: "Once again, the refinancing of the extensive Median portfolio – partly due to the current difficult market environment – demonstrates the potential of healthcare real estate in Europe in general and in Germany in particular. Global investors recognised these opportunities early on. Thanks to stable returns and despite higher interest rates, they are able to refinance their loans at attractive terms."
