Sector ‘doing much better here than in the rest of Europe’, according to CEO of Aedifica, Stefaan Gielens during a call with investors
International investors, including private equity and property trusts, have invested heavily in Irish care homes and healthcare properties over the past few years.
Many have been attracted by the country’s ageing population, a fragmented market ripe for consolidation and government funding that guarantees incomes.
The increase in international investment has been notable. Last year, research by UCD showed just 10 investment funds held one-third of all nursing home beds in the market, a huge shift from 2017 when their presence was almost non-existent.
Aedifica entered the Irish market in 2021 and has been highly active since, owning 22 properties with 2,300 users.
During a call with investors, Stefaan Gielens, chief executive of Aedifica, listed Ireland as one of the markets he would be most keen to acquire more assets in when asked by an analyst.
‘There’s a clear demand for new capacity in Ireland, and it shows in the numbers,’ says Gielens. Stock image/Getty
Gielens said Ireland was “doing much better than the rest of Europe”.
“So, this is a fairly young portfolio with mature assets, but fairly young,” he said.
“But what we do see in the portfolio in Ireland is that ramping up is going at quite remarkable speed, meaning that for most of these Irish care homes, 12 months after delivery of the asset, we already see occupancy rates going above 80pc, in some cases, even reaching 90pc.”
Gielens said levels of occupancy reported in Ireland’s facilities would not be seen in the rest of Europe for two years after delivery.
“So there’s a clear demand for new capacity in Ireland, and it shows in the numbers,” he added.
Aedifica’s results for 2025 showed the group had a total investment programme worth around €276m at the end of last year. Ireland’s budget was valued at €102m, the highest listed. Around €187m of the group’s total budget remained to be spent.
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The group listed various projects for 2025, including developments in Ireland such as a Limerick cancer care centre and care homes in Kilcoole and Crumlin, Dublin. The Irish projects have a pipeline of investment worth €85.5m, the report said, with completions due next year and in early 2028.
Aedifica’s portfolio of marketable investment properties in Ireland had grown in value by €7.2m during the year, up 1.7pc, the results said.
Operator occupancy levels at Aedifica’s facilities had also hit 96pc in Ireland. This compares to an average of 91pc across the group’s portfolio.
Aedifica has developed a portfolio of more than 615 properties across Belgium, Germany, the Netherlands, the UK, Finland, Ireland and Spain, valued at around €6.3bn.
The real estate group is listed on Euronext Brussels with a market valuation of around €3.7bn. The Belgian group’s portfolio in Ireland is mainly focused on elderly care.
Last July, the Sunday Independent reported about Aedifica’s plans to invest €26.5m in the development of a state-of-the-art cancer centre in Limerick. The centre will be operated by UPMC and Bon Secours Health System, Ireland’s largest private hospital group.
Aedifica did not respond to a request for comment.