Belgium's Aedifica expands healthcare co-operation with Specht

Belgian listed healthcare REIT Aedifica has significantly extended its co-operation with Germany's Specht-Gruppe, agreed upon last August, by committing to new construction of senior living accomodation on eight sites in Germany, totalling 220 new apartment units. The contract value is €44m, for an initial gross yield of 5.0%.

Last year Aedifica bought 17 senior residence projects from Specht, at an investment volume of about €200m; the latest deal involves eight of the 17 sites, and a further investment of €44m, bringing the total portfolio now being jointly developed up to 1,800 units.

The new eight sites will all be developed in northern Germany (Mecklenburg-Western Pomerania, Lower Saxony, North Rhine-Westphalia, and Schleswig-Holstein),The housing units are designed for independent living with care services available on demandand will cater to the mid- to high-end market segment. They will be located on care 'campuses' which also feature complementary services, such as housing for seniors requiring continuous care, a day centre for seniors and, in some cases, childcare services or a pharmacy.

Aedifica will buy the respective sites, while construction firm Residenz Baugesellschaft, itself part of the Specht Group, builds the apartments. The units will be operated by Specht subsidiary Residenz Management, with 30-year lease agreements.

Earlier, Aedifica had also announced the acquisition of four further fully operational sites (in Hessen (x2), Thüringen and Lower Saxony) and the construction of a new rest home (in Weimar), due for completion in 2020, for a contract value of €39m. The assets, with 465 units, are currently operated by Azurit and are yielding a gross 6%. The leases on the existing properties are for 20 years, while the Weimar project will have a 25-year lease.