Fears of a post Brexit property market slowdown has prompted Investec to shift one-fifth of its capital into “less sensitive” areas including care homes.
Property Week reports that the business has moved £200 million into care homes, GP surgeries, student accommodation, hospitals and theme parks over the past 18 months.
Investec’s chief investment officer Chris Hills said “stable” asset classes such as care homes were set to benefit from increased demand and rental growth in the future.
Target Healthcare is among the care home owners to have received funding from Investec.
Hill added: “Many investors are looking for a healthy level of income without taking on too much economic risk in terms of voids or tenant defaults, and these non-standard property plays are ideally suited to this objective.
“These subsectors benefit from long and stable leases, strong cash flow provision and favourable demographics that are likely to result in increased levels of demand over the long term.”