
Alive and kicking: Indian assets becoming new nirvana for healthcare SREITs
Robust subcontinent dominates 50% of revenues.
Healthcare SREITs are on stable ground, thanks mostly to a robust healthcare sector and the exposure to Indian assets.
A report by Fitch Ratings showed that the outlook for the healthcare sectors in Singapore are stable, driven by improving affordability, higher incidences of chronic illnesses, ageing populations in some countries, and the rise in medical tourism.
The report further noted the importance of Religare Health Trust’s all-India portfolio of healthcare assets, which is valued at $590m. By the end of 2013, Religare’s assets accounted for 19% of the healthcare SREIT sector while its revenue accounted for nearly 50%.
According to the report, “Fitch expects the resilience of healthcare income through economic cycles, and the strong growth prospects for private healthcare services in India, to largely offset the higher business risks associated with an increase in the sector’s exposure to emerging-market assets.”