Amavir Sant Cugat in Sant Cugat del Valles (Barcelona)

Adriano Care buys two assets and closes on €265m target

Spanish senior home REIT Adriano Care, which is managed by Azora, is investing €35 million in two new nursing home assets in Santander and Sant Cugat.

The Santander asset, located in the central district of Puerto Chico, has 118 beds and is leased to Orpea. The home in Sant Cugat, which has 180 beds, is leased to Amavir. Both have mandatory long-term rental contracts.

Including these acquisitions Adriano, a Spanish socimi listed on the BME Growth, has invested more than €100 million in 2022. Its portfolio is now worth over €235 million including committed investment in developments, and comprises 22 assets with 2,875 beds. About 82% of the portfolio comprises traditional nursing homes and 18% is in the emerging senior living segment.

Adriano’s target is to invest €265 million.

Operators who have leased the assets include Colisee, DomusVi, Amavir, Orpea, Vivalto and Clece.

“Adriano Care remains committed to addressing the growing need for housing solutions associated with an ageing population, adapted to the needs of our seniors and to new real estate trends,” said Concha Osácar, founding partner of Azora.

“With these two new acquisitions, the socimi is making progress in consolidating its portfolio with the aim of completing its investment commitment in the coming months, in line with its objectives.”

Author: Paul Strohm

Source: Real Asset Insight

Jan-Bastian Knod, Cushman & Wakefield

German healthcare investment volumes hit €1bn in H1: C&W

Germany’s healthcare real estate market saw investment transactions worth a total of approximately €1 billion take place in the first half of this year according to Cushman & Wakefield.

The figure was down on the same period last year when assets worth €1.14 billion changed hands, but it was still the second strongest first half in the past ten years, C&W points out.

Part of the Futura portfolio acquired by Primonial.

The second quarter figure, around €430 million, was slightly above the equivalent figure in the previous year. Most of the transaction volume was accounted for by nursing care properties, where deals totalled €357 million.

C&W said that yields are stable and the prime yield for nursing homes was 3.9%, the same as in the first quarter. Yields for assisted living property are between 3% and 3.5% while the prime yield for medical centres and medical care centres is in the range 3.5% to 4%. Yields on clinics and hospitals are about 50 basis points higher.

“Demand for care properties remains high, both among investors already active in the German market and among potential entrants to the market,” said C&W head of healthcare advisory and residential advisory Jan-Bastian Knod.

“The financing environment has changed significantly over recent months. Nevertheless, prime yields remain static for the time being, reaffirming the crisis resilience of healthcare real estate, already proven during the Covid-19 pandemic.”

Jan-Bastian Knod.
About 78% of the transaction volume (€338 million)was accounted for by individual deals although among portfolio transactions, Primonial’s purchase of the seven-asset Futura III portfolio made a significant contribution and C&W said it expects further major portfolio transactions to be completed by the end of the year.

Over 30% of deal volume is accounted for by forward purchases owing the shortage of existing assets in the care sector.

“Higher construction costs, rising interest rates, geopolitical crises and growing inflation rates are causing great uncertainty,” Knod added.

He said that in recent years operators in Europe have become increasingly professionalised and consolidated. Operational platforms have become larger, however, Knod points out that many investors prefer a mix of large, creditworthy operators and small to medium-sized regional companies with expertise in specific markets.

Author: Paul Strohm

Source: Real Asset Insight

70-bed nursing home in Dettenheim, Baden- Württemberg

Dettenheim deal kicks off Kingstone’s €400m care fund

Munich-headquartered Kingstone Real Estate has acquired a 70-bed nursing home in Dettenheim, Baden- Württemberg, in an off market deal with GFS Bauträger und Immobilienvermittlungs. The asset has been bought as a seed investment for open ended healthcare fund Kingstone Living & Care I, which is targeting a volume of €400 million.

Kingstone launched the open-ended special alternative investment fund together with IntReal International Real Estate. Kingstone Living & Care managing partner Paul Muno said that the Dettenheim property is a perfect fit for the fund because “the building quality is outstanding and there is a long-term contract in place with a superbly positioned regional operator.”

The fund has a buy-and-hold strategy and is seeking sustainable properties with established operators across Germany, Muno said.

The Dettenheim building was constructed in 2019 and has a gross floor area of about 4,000 sq m. It is let to operator Incura and has a geriatric-psychiatric living area as well as a ‘young care’ living area for patients under 60 with somatic illnesses.

Kingstone Living & Care was launched in April 2021 as the healthcare investment platform of Kingstone Real Estate whose co-founder and managing partner Bärbel Schomberg is managing director.

Source: Real Asset Insight

Author: Paul Strohm

Juergen Fenk, CEO, Primonial REIM

Fenk’s ESG focus at Primonial REIM

The S in ESG is gaining more and more traction. Companies are discovering that having a positive impact on their workers, their community and society as a whole is not just the right thing to do, but it is also what investors want, as Juergen Fenk, CEO, Primonial REIM explains in the CEO interview in the new edition of Real Asset Impact.

Primonial REIM is the biggest healthcare real estate manager in Europe. The prominent role the asset class has played for the company is the result of close relationships with the large French operators. The largest five operators in France are the largest five in Europe.

The company now has more than €10 billion assets under management in the wider healthcare sector, which includes senior living, clinics, and the entire spectrum, with a presence in seven countries in Europe.

Fenk joined Primonial REIM as chief executive in March 2021 with a goal to turn a great French champion into a European champion. He has pursued an expansion strategy in new markets, opening offices in London and Singapore, but has also kept a close eye on sustainability, systematically integrating ESG criteria into the investment and management process.

ESG is a key element of the company’s strategy at three levels, he explains: the corporate level, which involves activities, labels and instruments; the fund level, which involves transforming funds into Article 8 or into Article 9. And finally at the asset level, which involves collecting all the data and getting the intervention strategy right.

“It’s not just marketing, it’s a real conviction,” Fenk said. “We try to find ways to get to a better world and a better built environment with others.”

Download Real Asset Impact to read the whole interview.

Author: Nicol Dynes

Source: Real Asset Insigh

senior housing in Europe

Kryalos and Euryale team up to create Italian healthcare fund

Kryalos, the Italian asset manager, has signed a deal with Euryale, the French senior living and nursing home specialist, for a €300 million healthcare fund that will target new builds, pre-constructed or refurbished assets in Italy.

Italy has an acute shortage of healthcare facilities and nursing homes, yet it has one of the fastest-ageing populations in the world, being second only to Japan. It is one of the countries with the lowest number of beds in specialised structures for citizens over 65 years of age: 1.86 places for every 100 people in 2021, compared to a European average of five.

Healthcare therefore has huge development potential as the current offer does not remotely match growing demand, especially in the wealthier northern regions of Italy like Lombardy and Emilia-Romagna.

Paolo Bottelli, CEO, Kryalos
Paolo Bottelli, CEO, Kryalos

“The healthcare sector needs a professional and competent approach to real estate investment in order to create facilities that meet the needs of the market in line with best-in-class sustainability criteria,” said Paolo Bottelli, CEO, Kryalos. “For us this fund is important because it allows us to enter a neglected market where we can get to play a significant role and at the same time make a contribution to society.”

The newly-constituted Euryale Healthcare Italia 1, a closed fund reserved for professional investors, targets core investments and its strategy is to promote ESG principles with a long-term horizon, up to 2041.

The two companies have already identified a substantial pipeline of investments, some of which will be realised this year. They include private medical facilities, specialised clinics, intensive therapy centres, diagnostic centres, clinics and care homes.

The deal is part of Kryalos’s strategy to expand its ESG investments, the asset manager said, while contributing to relieving the shortage of healthcare facilities in Italy. Senior citizens’ health and quality of life are seen as key both by the UN’s 2030 Agenda and by the PNRR, Italy’s national plan of recovery and resilience, which has set aside €2 billion to activate 1,288 new dedicated facilities and 600,000 new beds by 2035.

David Finck, CEO, Euryale

“Euryale wants to invest and expand its activity in the healthcare sector in Italy,” said David Finck, CEO, Euryale. “The Italian market needs many new health facilities and beds and this new partnership is a unique opportunity for us to continue our European investment strategy. We strongly believe that combining environmental and social criteria will lead to financial outperformance over the long term.”

Privately-held Kryalos has €10.7 billion AUM, while Euryale has €2.4 billion invested in the healthcare, senior living and nursing home sector in France and other European countries.

Author: Nicol Dynes, Real Asset Insight

Senior living in the Nordics

New needs of wealthy seniors open gap in Nordic healthcare

The lack of provision of hybrid and novel concepts of senior housing in the Nordic countries and the unsatisfied and potential demand from comparatively wealthy seniors is creating a market opportunity for real estate according to Riikka Moreau, fund manager at Copenhagen-headquartered asset manager Northern Horizon.

Riikka Moreau, fund manager at Copenhagen-headquartered asset manager Northern Horizon

Writing in the latest edition of Real Asset Insight Magazine, Moreau points out that , as in other regions, the demographic profile means that there has been a large increase in the elderly cohort and that the private sector has a growing role in providing appropriate accommodation.

However, Nordic seniors are wealthy in terms of retirement savings. “Many Nordic seniors have the financial means to pay for solutions that match their individual needs” Moreau writes.

“We are also seeing a potential for hybrid solutions and new concepts that cater to seniors who would like to leave their own home earlier in their life.”

“The social infrastructure aimed at seniors and elderly is at a turning point in the Nordics,” she stated.

Author: Paul Strohm, Real Asset Insight

Résidence Véronique, is located in the Somme-Leuze

Aedifica to spend €21m on new Belgian continuous care facility

Belgian healthcare specialist Aedifica has acquired a care home in Belgium which it plans to extend, investing a total of €21 million.

The facility, Résidence Véronique, is located in the Somme-Leuze area of the Namur province and currently has capacity for 72 residents needing continuous care, but the planned extension will expand this to 131. Completion of the extension is expected in the last quarter of 2024.

“The design of the extension pays special attention to energy efficiency,” said Stéphanie Lomme, country manager of Aedifica Belgium. “As a result, the building will contribute to the continued improvement of the sustainability of Aedifica’s real estate portfolio.”

The building will use energy-efficient systems, such as solar panels, a smart ventilation system and a rainwater management system.

The home is to be operated by Vulpia, which already operates 12 Aedifica sites, and is let on a new irrevocable 27-year triple net lease.

Aedifica Belgium’s healthcare property portfolio currently comprises 83 sites.

Author: Paul Strohm

Source: Real Asset Insight

Carestone development at Unna-Hemmerde, North Rhine-Westphalia.

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


Care home in Bedfordshire

Patron-backed Hamberley sells £100m five-home care portfolio

Patron Capital-backed luxury care home developer and operator Hamberley Group has sold five care homes to property investor Rynda Healthcare for more than £100 million.

Hamberley’s operating company, Hamberley Care Homes, will lease back three operational care homes on 35-year terms and two homes under development in Eastleigh, Hampshire, and Enfield, north London. Two of the existing care homes are in Dorset and one is in Bedfordshire (pictured above). Collectively the five homes account for 353 beds

Hamberley Care Homes operates 14 care homes and plans to have a total of 28 homes by 2024.

Patron Capital managing director Keith Breslauer said: “This is the latest in a number of sale-and-leaseback transactions we’ve completed through Hamberley, highlighting growing investor interest in the later living sector.”

In addition to the five homes sold to Rynda Healthcare, the group has a development pipeline of sites in locations including Cambridge, Dorking, Camberley, Basingstoke, Southampton and Bristol and has over £170m of equity capital allocated for healthcare investment.

Author: Paul Strohm

Source: Real Asset Insight

“generational living” project in Rosenheim, south-east of Munich.

Multi-generational German housing project starts on site

Essen-headquartered Instone Real Estate has started development of a “generational living” project in Rosenheim, south-east of Munich. The scheme, which is being jointly undertaken with company BayernCare is located in the city’s mixed-use Lokhöfe district and will accommodate seniors and students alongside each other.

The project comprises 142 student apartments which Instone will develop, 44 apartments for the elderly and a care facility for a total of 81 residents. The senior housing component will be developed by BayernCare.

BayernCare managing director Günther Marzog said that the combination of senior citizen and student housing is groundbreaking. “Integration into urban structures is particularly important for seniors. Here you are in the middle of life, in the immediate vicinity of young people and close to shopping and meeting places,” he said.

The project comprises two adjacent seven-storey, L-shaped buildings, separately housing senior citizens and students. The buildings are designed to create a sheltered inner living area with a green inner courtyard where the different generations can relax and meet.

The student apartments, all now sold, will range in size from 19 to 36 sq m and there are 12 different apartment types. An underground parking area will provide car spaces and cycle storage.

BayernCare has pre-let the care facility to the Charleston Group, which will also provide a range of care and domestic services for the retirement home residents.

S&P Commercial Development is developing Lokhöfe district’s commercial areas which will comprise 10,600 sq m of office space and 2,200 sq m of retail space in addition to residential buildings. The district will also include a 145-room Premier Inn hotel and a 250-space multi-storey car park. The new city quarter will be completed in 2023.

Author: Paul Strohm

Source: Real Asset Insight