Category: Allgemein

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

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.

“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.

“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

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.

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

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

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

Source: realassetinsight.com

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

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

Cheyne Capital is lending £219 million to Riverstone, which provides residential property in premium London locations for people of over 65 years.

The senior finance facility will be used for a development in Kensington and represents the UK’s largest single asset debt deal for the later living sector, according to Cheyne.

Riverstone Kensington is at Royal Warwick Square and will comprise 190 one, two and three-bedroom apartments and will welcome its first residents this year. Announced in July 2019, it is being developed by St Edward.

The financing follows a year after Cheyne provided Riverstone with a £99 million facility for its Fulham Riverside residence, which is due to open in the second half of 2022. Riverstone Fulham will have 161 one, two and three-bedroom apartments and was acquired in 2018 from Barratt London and London & Quadrant. Riverstone’s residences include amenities such as a spa, pool, restaurant, cinema and concierge services as well as on-site professional care, when it is needed.

“The model, which has seen great success internationally, is set to experience further demand over the coming years in the UK as its over 65s population continues to grow. Riverstone’s proposition is ideally placed to meet increasing demand,” said Simon Loveridge, Riverstone’s chief financial officer.

Earlier this month Riverstone announced the acquisition of its third residence, on Bishops Avenue, near Hampstead Heath in north west London. The company acquired a 2.5-acre site and will build a 230,000 sq ft project with an all-electric energy strategy targeting a net zero carbon plan.

Author: Paul Strohm

Source: Real Asset Insight

Brussels-listed healthcare property company Aedifica has invested €126 million in two portfolios, one comprising five homes in Jersey and the Isle of Man, the other consists of three homes in Ireland. The deals will increase Aedifica’s capacity by a total of more than 600 residents.

Aedifica has paid £46 million for the four homes on Jersey and one on the Isle of Man, operated by LV Care Group, part of Emera Group. The price represented a yield of about 6%.

The portfolio comprises two modern, purpose-built care homes, two converted hotels and a long standing care campus. Three of the assets will be extended and reworked at a cost of about £12 million to provide additional bedrooms and communal living areas and will be completed in 2023 when they will have a total of 283 en-suite bedrooms for seniors requiring continuous care.

“This transaction will further strengthen our position and visibility in the British market, increasing our portfolio in the United Kingdom, including Crown Dependencies Jersey and Isle of Man, to over €1 billion upon completion of all development projects,” Aedifica UK country manager Bruce Walker said.

The company also acquired an apartment building and a development plot adjacent to the St. Joseph’s care home for about £9 million but says these non-strategic assets will be sold within the coming 12 months.

The portfolio in Ireland entails a total investment of about €57 million. The three care homes were completed during the first quarter of 2022 in Dundalk and Duleek in North East Ireland and in Riverstick, South West Ireland (pictured).

The care homes accommodate a total of up to 346 elderly people requiring continuous care. The deal increases the company’s portfolio in Ireland to nearly €270 million.

The Irish properties will be operated by Silver Stream Healthcare.

Author: Paul Strohm

Source: Real Asset Insight

MoZaïC Asset Management & the SHHA have launched a collective initiative to restore confidence in the nursing home sector.

MoZaïC AM introduced an initiative, under the umbrella of the Senior Housing & Healthcare Association (SHHA), to restore trust in the sector which was shaken by the Orpéa crisis in France. Details were presented during the SHHA briefing at MIPIM. “There is an urgent need to tackle any misconceptions about the sector and represent the state of play of Governance within the top operators in the major European markets, ” – said Frédéric Dib, CEO of MoZaïC AM.

Recent publications and documentaries have cast a shadow on the market of nursing homes in France as some have pointed that there could have been a systemic drive from the operator’s management that may have led to the shortfalls identified.

The SHHA has the conviction that many operators in the sector have made tremendous efforts over the last few years to raise their Corporate and Social Responsibility standards. However, such events raise concerns among investors for the sector, in particular around the reputational risk that could be associated with their investment in nursing home operators or real estate, but have little tools to assess, analyze and/or compare.

This is why MoZaïC AM and the SHHA invites willing operators to respond to a questionnaire, whose aim would be to confirm/establish/validate to which extent checks and balances have been put in place within each respondent’s organization to ensure that the well-being of the residents, their families and staff members are at the heart of the operators’ core processes; And that systems are in place to ascertain that in case of any serious adverse event occurring, it will be known, addressed and resolved in a timely and adequate manner.

The objective is to present the state of play of the quality of governance within the top European operators. Each operator will be able to compare its score with the benchmark, and each investor will be able to ascertain, for each of the KPI identified, what is the benchmark of the nursing home sector.
A reflection will be initiated by members of the SHHA as to whether this initiative should be complement by the setting up of a label that could be established with the help of certification agencies.

The objective of the initiative is to provide a response to a questioning that has shaken confidence in the sector and has raised questions from multiple directions (Regulators/ Personnel/ Users and their families/ General public/ Investors in Real Estate and Operations).

MoZaïC will provide the necessary operational and analytical support for this initiative. An ethical commission will be established by the SHHA to ensure an independent approach. The questionnaire is to be developed in the coming weeks, so that the report on the state of play of governance within the European nursing home operators shall be published by the end of the year.