Internos launches new healthcare fund, beefs up retail

Internos' German asset management arm has launched a new Spezialfonds, Care Invest II, its second open-end fund focusing on healthcare real estate.

Care Invest II is targeting a total investment volume of €300m over the next three years, of which up to €150m will be equity. The fund aims to achieve a distribution yield of up to 6% over a 10-year average.

The goal is to invest in a balanced, regionally diversified portfolio of healthcare properties, with stable long-term value, with the emphasis on German nursing homes, outpatient care, sheltered housing facilities and rehabilitation clinics treating patients in psychiatry, gerontology and oncology.

The lot sizes are expected to be between €7m and €20m for care homes and assisted housing properties, and between €10 and €30m for rehabilitation clinics and medical centres.

According to Paul Muno, partner and head of Capital Relations & Germany at Internos, "Positive yield expectations, which are higher than those on traditional office or retail investments, and the current strong financing conditions are what make this investment strategy particularly attractive. We currently have a property pipeline of around €60m."

Earlier in the month, Internos bought five retail warehouse assets in northern Germany from May & Porth Group on behalf of the SCPI Novapierre Allemagne Fund, managed by PAREF Gestion.

The so-called "high 5" portfolio, in Hamburg, Stade, Gifhorn and Flensburg, has a total lettable area of 16,500 sqm and generates annual income of about €1.9m. The portfolio is 98% let with a weighted average unexpired lease term of nine years, said Internos.

The SCPI Novapierre Allemagne Fund now comprises 35 properties with a total value of around €275m. The fund focuses on properties anchored by food retailers with lot sizes between €5m to €50m and leases with six to eight years remaining. Tenants include Edeka, Aldi, Penny, Rossmann and Media Markt.

Internos, which has more than 100 employees across eight European offices, was aquired late last year by Principal Real Estate Investors, the €75bn AuM real estate investment group within the Des Moines, Iowa-based Principal Global Investors.