Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
Issue link: https://seniorshousingbusiness.epubxp.com/i/484276
By Bendix Anderson In just two years, private equity fund manager Kayne Anderson Real Estate Advisors (KAREA) has amassed a large seniors housing portfolio in the United States. "We've been pleasantly surprised at how much we've been able to accomplish," says Max Newland, KAREA's managing director of healthcare real estate. The private equity frm now owns 3,500 units of seniors housing, up from zero two years ago — plus deals in progress that should grow the portfolio to 5,000 units within the next 12 months. This has earned the frm a place among the top 50 owners of seniors housing in the United States, according to the American Seniors Housing Association. Private equity funds are pouring money into seniors housing investments, drawn by the sector's proven track record, strong real estate fundamentals and new sources of information on supply and demand. Fund managers with a long history of investing in seniors housing are allocating more to the sector. New funds are also joining the bidding for existing seniors properties and developing new properties. Private equity funds manage capital on behalf of investors ranging from pension funds to high-net-worth individuals. The frst challenge of the private equity business is convincing investors to put money into their funds. "The fundraising market is more competitive than ever," says Andrew Moylan, head of real assets products for Preqin, a research frm that gathers information on private equity investments. Private equit y bets big on seniors housing n Investment Fund managers are drawn to build or buy seniors housing properties. The frst big investments by Kayne Anderson Real Estate Advisors in seniors housing include Aston Gardens, a portfolio of six mostly independent living properties including Aston Gardens at Pelican Marsh in Naples, Fla. 2014: Banner year for PE fundraising* Private equity funds focused on niche property types, including seniors housing and student housing, raised $2.6 billion in 2014, more than any other year in the last decade. Year No. of funds Aggregate capital raised 2004 1 $100 million 2005 4 $100 million 2006 6 $1 billion 2007 9 $1.4 billion 2008 5 $600 million 2009 10 $1.2 billion 2010 4 $200 million 2011 12 $900 million 2012 11 $1.5 billion 2013 9 $1.8 billion 2014 12 $2.6 billion 2015 YTD 1 $900 million * When a PE frm announces the closure of a round of fundraising, the total amount raised is recorded in that year. Source: Preqin 32 www.seniorshousingbusiness.com Seniors Housing Business n February-March 2015