Belgian REIT Aedifica boosts German nursing home holdings
The Brussels Stock Exchange-listed REIT Aedifica has bought a further portfolio of eight nursing homes in northern and western Germany for €60m and an initial gross yield of 7%, and raising its German holdings to above €100m.
The nursing homes are located in small cities in North Rhine-Westphalia and Lower Saxony and offer 642 beds, the firm said in a statement. Seven of the homes are in North Rhine-Westphalia (Rheinbach, Wenden-Rothemühle, Kalletal, Kirchlengern, Kierspe, Enger, Olpe), and one is in Bad Harzburg, Lower Saxony. This brings the company's number of beds in Germany to 1,135 across 13 nursing homes, after an earlier acquisition this spring of two other nursing homes in Bonn and in Sonneberg, Thuringia.
“We look forward to taking another important step in the development of our German portfolio, with the addition of eight rest homes,” said CEO Stefaan Gielens. The assets were constructed between 2009-2011 and are leased for 25 years to Bremen-based operator Residenz Group, which will remain responsible for repair and maintenance costs of the buildings.
Aedifica has allocated the assets to three Luxembourg fund vehicles, in part due to the legacy of the assets previously being owned by the Sireo Immobilienfonds Nr. 5 Sicav-Fis managed by Corpus Sireo. Residenz Group bought the assets back from Corpus Sireo earlier this year, prior to offering them to Aedifica.
Aedifica said Germany offers significant investment opportunities in the nursing home segment as it is the largest European market and has a strong demographic trend towards an ageing population. Care operators have started to grow and consolidate as well.
“As in all western European countries, the need for financing solutions for real estate infrastructure in the healthcare sector will inevitably grow,” said Gielens.
Aedifica has a portfolio of €800m, which includes senior non-nursing-home housing in Belgium and apartment buildings in the largest Belgian cities, in addition to its care facilities in Germany. The group has a market capitalisation of €550m.