German Carestone sells nine senior facilities for €168m

German senior housing and care home developer Carestone Group is to sell a portfolio of nine facilities for €168 million to an international institutional investor.

Carestone development at Unna-Hemmerde, North Rhine-Westphalia.
The Hanover-based company has agreed the sale of six standing assets and three development projects that will provide a total of 1,000 senior living units with assisted living, day care, and inpatient care on site. The nine properties are located in the regions of Saxony, Saxony-Anhalt, Hesse, North Rhine-Westphalia, and Baden-Wuerttemberg.

Carestone Group, which is owned by a fund managed by ActivumSG Capital Management, said it is actively diversifying revenue streams as part of its growth strategy and the sale will provide the purchaser with exposure at scale to Germany’s senior living market, where properties generate attractive, long-term incomes.

Karl Reinitzhuber.
Carestone is currently working on more than 90 projects to deliver senior housing and care home facilities across the country.

“Germany urgently needs more accommodation and care facilities for its elderly citizens, so bringing institutional investment to the sector through portfolio sales like this will certainly help reduce the shortage,” Carestone CEO Karl Reinitzhuber said.

“ Institutional transactions complement the sales we continue to make to individual investors on other projects, giving us a better sales mix and positioning us for continued growth in face of strong demand for senior living and care facilities.”

Cushman & Wakefield and FPS advised Carestone Group on the transaction.

Author: Paul Strohm, Real Asset Insight