A management team of four partners with considerable experience in pan-European real estate has launched a new pan-European boutique investor, K2MB Capital (K2MB), a real estate investment and asset manager for healthcare and social infrastructure.
The founding team has already been working together for several years in building up the European business of a leading Canadian property investor.
In their career to date, the four founders have been involved in transactions in healthcare property and social infrastructure property totalling €8.5 bn. The partners include Timothy Blackwell, previously global head of real estate at Credit Suisse and European head of asset management at UBS, and Jordan Milewicz, former COO for Germany of the Swedish residential property company Heimstaden.
K2MB will take on the investment and asset management for various investment vehicles such as club deals, regulated institutional funds or special assets, and offers services around restructuring and investment in operating companies.
Investments are primarily aimed at Core+ and Value-Add in the major European core markets.
Timothy Blackwell, partner at K2MB, said: 'We are starting our business in the middle of a transformation phase in the European real estate industry.
'Previously niche products such as hospitals and medical centres, rehabilitation clinics, schools and official buildings will become the focus of investors in the coming years due to the massive demand.'
JLL data suggests that the gap between supply and demand for medical centres has recently been reflected in prime yields of 4.5 to 4.75%, while clinics and rehabilitation centres are offering yields of 5.5 to 6%.
K2MB has deduced that there is particular demand for care properties, as the number of people in need of care in Germany, for example, rose to around five million between 2011 and 2021, according to the Federal Statistical Office.
K2MB calculates net initial yields of 6% and more, depending on the type of use and investment vehicle. The company is targeting assets under management of around €2 bn by 2028. In addition to its international network, the investment boutique has an advisory board with extensive expertise in the healthcare sector.
