Saudi Arabia to host pioneering healthcare initiative

Growing to an estimated asset value of more than $700bn, the sector has been more or less resilient to present economic emotions. During 2011, global healthcare midmarket merger and acquisition activity grew 15 percent outpacing the global trend by 500 basis points. This investment includes medical office buildings, hospitals, assisted living and skilled nursing.

So why is private interest in the sector booming? Two words: changing demography. The huge demand and supply gap for the ageing baby boomers have put a significant increased pressure on healthcare systems.

In addition, the new phenomenon of 'double ageing' within world communities guarantees occupancy and a sustainable future for healthcare and the associated real estate—consider the potential of an income-generating real estate asset class that has year round occupancy and really long leases.

This trend of private support for healthcare is obvious around the world—for instance, Germany has seen a series of public healthcare asset sales to private entities during the last few five years. On the other hand, India demands another million beds by 2020 with an investment requirement of close to $78bn. In fact post-recession, the only real estate class not to be downgraded by CRAs was Healthcare REITs.

Given the opportunities in this isolated but booming sector, Saudi Arabia is the destination of one of the most focused healthcare investments platforms to date. Organised by leading French business information company naseba, the Real Estate Investment Initiative on November 27th in Riyadh is hosting leading GCC investors in an attempt to open channels of investments to major business cases within this real estate asset class.

With medical real estate a niche market, the initiative also aims to re-educate stakeholders about the value of such asset classes and the compatibility of the same with their strategy.
Keynotes, panel discussions and round tables all feature a progressive agenda designed to provide investors with insight, knowledge and confidence in the opportunities that arise within the asset class. This private, by-invitation only platform is also helping business cases within the sector looking for investment partners, by introducing new opportunities and key players in the market.

For the invited businesses it is an opportunity to meet and understand liquid investor sentiments and source strategic business partnerships.