Primary Care, Medical and GP Centres. Targeting a Healthy Investment

Healthcare investment is fast becoming one of the most sought-after in the real-estate sector, with more and more people choosing to invest in the development of new Primary Care, Medical and GP centres.

This increase in demand is a direct result of healthcare being viewed as a safe investment in uncertain times.  An aging population guarantees the demand for healthcare will continue to increase, and healthcare development offers a sector which isn’t price sensitive – with property let on long leases.

Investors can currently invest in Healthcare property through three companies - MedicX (MXF), Primary Health Properties (PHP) and Assura (AGR).  However, because there’s such a high demand for high yield, low-risk investments shares MedicX and PHP are currently trading at double-digit premia to net asset value (NAV). 

An alternative sector for investors is care home investment.  However because the rent is paid by private clients and local authorities rather than NHS backed CCGs this is generally seen as a more riskier investment.  Something, which has been reinforced in recent years by a number of high-profile failures, most notably that of Southern Cross.