CAREkonkret Interview with Oliver Radünz on the growing need for nursing homes
The main focus is on traditional nursing homes
Despite the increasing demand for new forms of housing and care, the Hamburg-based project developer HBB also sees the need for traditional residential care homes as "growing". In an interview, HBB managing director Oliver Radünz explains what quality of service is important in competition with other forms of housing.
Interview: Darren Klingbeil
Hamburg // The HBB Hanseatische Betreuungs- und Beteiligungsgesellschaft mbH is, on the one hand, a project developer of retail space and shopping centers. On the other hand, it develops and builds senior care homes, which it holds in its own portfolio and which are operated exclusively by Domicil Seniorenresidenzen SE from Hamburg.
Is the traditional nursing home becoming obsolete in view of the spread of new forms of housing and care?
Oliver Radünz: In our view, the new forms of housing and care will complement and broaden the range of services on offer. Given the significant long-term need for local nursing care for all levels of care in most German cities, we believe that the need for inpatient care - and therefore also for traditional inpatient nursing homes - is not only high but also growing. However, the key factors are choosing the right location, a precise location analysis and a property tailored to the respective location - and the operator's corresponding concept. For HBB as a long-term investor and owner of 42 nursing homes, this means, regardless of current trends, that we examine every possible region, every city and every district in detail before we get involved.
How does the trend of creating new forms of housing in inner-city districts fit with HBB's orientation as a developer and investor?
We see this as a complement. HBB has very successfully specialized in residential care homes for seniors in premium locations. We build and invest in inner-city locations that are in the middle of life - as the slogan of our operator Domicil also says. For example, we have developed 16 locations in the middle of Berlin, three in Frankfurt and two in Munich. In the middle of established urban residential areas. The development of such locations is only successful with the appropriate specialist know-how, a solid capital base in the background and a lot of perseverance. Given the space required for our facilities and our specialization, we continue to see the construction of classic residential care homes as our main focus.
Have you also noticed that the supply of space in inner cities is growing as a result of Corona and retailers and hotels going bankrupt? Corona as an opportunity to return senior living to inner-city locations?
In fact, a generally difficult or perhaps crisis-ridden economic environment can also be an opportunity for a social property that operates in a partially regulated care market and has to compete with other types of property use such as housing or the hotels you mentioned in the inner city area, particularly in terms of land price. At least that is how we have perceived it over the last 20 years - and it is clear that not every price is currently being paid for every inner-city area. We are looking at this closely and will respond accordingly. In any case, we are currently seeing more opportunities to acquire land in good inner-city locations than we did two or three years ago. This is helpful for local care, and also for an inner-city mix of uses. In strong real estate markets, local politicians are also called upon to explicitly provide and reserve areas for social uses and in particular for inpatient care. This is the only way in some cities to establish senior care homes in inner-city areas in price competition with other types of use. A variety of services – for example in the areas of food supply and housekeeping – are among the features that characterise the houses you have developed.
How do you plan service orientation in a project right from the start?
It is important that before the first planning step, or more precisely before purchasing the property, you clearly consider what concept and what requirements you want to implement. We see ourselves as a premium provider here. All of our facilities have their own kitchens where fresh food is cooked every day. All of our facilities also have their own laundry. The latter makes ecological sense, as we do not transport the laundry halfway across Europe, we reduce delivery traffic in inner-city residential areas - and our residents are happy to get their laundry back very quickly (and in full). We reject locations where we cannot implement this due to insufficient space.
Do you also consider service orientation when it comes to employees? That you plan to provide affordable housing for nursing staff at the same time?
In addition to the residents, the employees are the clear focus of our entire real estate planning. Working in senior care homes represents a significant challenge for the entire workforce. This is another reason why we have decided to only build new buildings in the senior care home sector, as this is the only way we can create a high-quality working environment and the appropriate technology for the employees. In very tight real estate markets such as in Munich, for example, we can also imagine building employee apartments if all the necessary requirements are met.
What is your performance promise to the operator with whom HBB works and to the municipalities?
One of HBB's main focuses is the construction and long-term investment in senior care properties at selected inner-city locations. We pay attention to an excellent choice of location, we have high expectations of our planners and, with our own architects and external specialists, we also ensure that the construction quality is very high. The property should also offer added value for the residents of a district beyond the care services provided, for example through additional advice services, our cafeteria with its food offering or events. We not only want to create care close to home, but also infrastructural added value - and all this with a comfortable property.
In which regions are you currently planning new properties?
Our expansion focus is currently in Bavaria, Hesse, Saarland and Rhineland-Palatinate. However, we can also imagine building further facilities in Berlin. In the fourth quarter, we will complete our 16th senior care home in Berlin. We recently completed a facility in the middle of Frankfurt – for this we spent a year demolishing a four-story bunker – and recently a facility in Friedberg in Hesse in a residential area. In the fall, we will complete our senior care home in Bad Vilbel, which we developed in very close coordination with the city. We have building permits for locations in Coburg and Kempten, and we will also start construction here in the foreseeable future. Otherwise, we are currently building in Saarbrücken and have further locations under development in Saarland. We would like to expand sustainably in Munich, Franconia and Allgäu.
About the HBB
The HBB group of companies, based in Hamburg, has been active in the real estate industry as an investor and project developer for over 50 years. Retail, office, hotel, senior citizen and residential properties have been built across Germany. HBB sees itself as a specialized investor with the aim of creating long-term, successful values. HBB is an owner-managed company and has a well-trained team of over 100 employees.
More information:
Mr. Oliver Radünz
Tel.: +49 (0) 40 600 907- 200
Email: raduenz@hbb.de
