Healthcare

Current Market Trends

Over 65-year old elderly persons will increase 32% from 2010 to 2040 and those over 75 years old will increase 58%. Of elderly persons certified to need long term care, those elderly persons are estimated to increase 60% from 2010 to 2050 and over 75-year old elderly persons certified to need long term care are estimated to increase 69%. “Elderly” and “Nursing Care” markets are targeted to be “Growth” sectors over the next 40 years.

 

■ Elderly Population Trend Forecast

 

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■ Elderly Persons Certified to Need Long Term Care Trend Forecast

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In addition, elderly persons certified to need long term care level 3 and above who would have difficulty being cared from home have exceeded 2 million in 2014 and by 2040 that number will increase to 2.85 million. Although new elderly housing and nursing homes are steadily being built, the demand for new elderly facilities are outstripping the supply. With the wait list for special nursing home for the elderly which are publicly subsidized facilities exceeding 500,000, the shortage of facilities for elderly requiring chronic care will continue.

 

 

■ Trend of Elderly Persons Certified to Need Long Term Care vs. Supply of Elderly Housing

*Elderly Housing includes elderly housing with services, nursing homes and other facilities. 

Source : Ministry of Health, Labour and Welfare Report  (March 2015)

 

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Our Strengths

1.  Wide experience in health care asset acquisitions

Since 2007, we have experienced staff that have made acquisitions totaling JPY 60 Billion (Portfolio IRR of 30%).

 

2.  Our staff known in the industry has vast experience in the healthcare field.

In our staff, we have healthcare consultants that have over 15 years of experience in this industry.

 

3.  Back-up operator function

When an operator goes bankrupt, we can provide a backup operator.

 

Our Investment Strategy
  1.  Target over 75 rooms facilities (Asset Size JPY 1 Billion)

74% of privately owned healthcare assets are less than 50 rooms and over 75 room facilities are only 8.7% of the total. As healthcare REITs, foreign and Japanese prefer larger asset size, over 75 room facilities will provide higher liquidity.

 

2.  Target lower fee facilities for elderly certified for nursing care

As many high upfront fee nursing homes have gone bankrupt, lower fee facilities for elderly certified for nursing care with stable occupancy is our investment target.

 

3.  Build marketplace for elderly care facilities once achieving a certain size (over 3,000 rooms).

With scale, there is opportunity for synergy with other businesses including food service, uniform and supplies, pharmacies, etc.