60 Seconds with ... John Cobb, Senior Managing Dir. of Real Estate, GE Healthcare Financial Services
Q: When did GE decide it would make the big leap into ownership with that 186-facility purchase from Formation Capital? A: We have long provided debt products to the long-term care industry. About 18 months ago, our customers began requesting equity. To meet their needs, we introduced an equity offering earlier this year. Since January, we have built a seven-person equity team and have nearly $2 billion in investments closed or currently under contract.Q: Are you looking to buy more?
A: Our pipeline is very strong and we are always looking at opportunities that benefit
our business and our healthcare real estate customers – including hospitals, assisted
living facilities, etc.
Q: Is this just part of a transition from GE being primarily a lender to an owner?
A: Our plan is to be a large industry player in both debt and equity. This acquisition of senior living facilities marks the largest to date for our healthcare real estate team. We look forward to increasing our investments in the long-term care market in the years ahead.
Q: How long do you think this hot real estate market will continue?
A: We believe in the industry fundamentals and think there is and will continue to be some stability in the market.
Q: Do you see more consolidation ahead?
A: I see some consolidation in the future. I also see equity recaps and general growth from small and large operators alike.