Charleston pursues a buy-and-build strategy in the German nursing home market. It currently operates approximately 1,600 stationary care beds in 22 facilities in Germany.
Market trends and drivers
The German nursing care sector is characterized by predictable growth of the number of people in need of care, which results from ageing population and long term socio-economic trends. Moreover, demand for nursing services demonstrates low correlation with economic cycles as alternatives to nursing care are limited. The regulatory environment in Germany has proven to be very stable.
Charleston’s investment rationale is founded on favourable and predictable demographic developments driving growth of the German nursing care sector. Nursing homes are backed by a stable regulatory regime providing good visibility of cash flows, while broad public and political acceptance of private investments creates attractive long term opportunities for quality-focused operators. Charleston aims to grow by acquiring and integrating a portfolio of high quality nursing homes with strong market positions.