Fitch Ratings reports more nontraditional buyers, particularly foreign capital and private equity firms, are looking to acquire healthcare real estate as real estate investment trusts' increasingly look to pare down their portfolios.
Specifically, foreign investment firms have shown interest in real estate with longer term viability, such as sovereign wealth funds, pension funds and insurance companies.
Three separate transactions between nontraditional buyers and REITs approached or exceeded $1 billion in value this year. Analysts at Fitch said the rise of nontraditional buyers as the highest bidders could indicate peaking values and an aging investment cycle.