French group Primonial buys 20-asset German senior care portfolio

French fund and asset manager Primonial REIM has acquired 20 senior care facilities in Germany from EQT Infrastructure on behalf of its healthcare and educational fund SCPI Primovie, in a sale-and-leaseback agreement.

At the same time Italian healthcare company KOS will take over the operative side and acquire the operating assets of the business, Charleston Holding. Financial details were not disclosed.

The 20 assets are located across six German states, comprising 1830 beds, 38 adult day care slots, and 48 apartments over a total surface area of about 120,000 sqm. The establishments have been fully leased for 25 years to Charleston, a German private provider of senior care and assistance services.

Charleston, headquartered in Füssen near the famous Schloss Neuschwanstein, was founded in 2014 by EQT, and operates 47 care homes with 4,050 beds, four day-care centres and seven ambulatory care locations.

Ulrich Köllensperger, partner at EQT Partners and investment advisor to EQT Infrastructure, said since the foundation of Charleston in 2014, the strategy has been focused on creating one of the leading care operators in Germany through multiple acquisitions and greenfield projects, but in particular through a focus on quality and integration.

Grégory Frapet, chairman of the Primonial REIM executive board, said: “(This deal)…will enable Primonial REIM, Europe's leading healthcare and educational real estate company, to accelerate its development in Germany. This operation with Charleston Group, a major private operator in Germany, emphasizes our strategy to support the tenants in their real estate stakes. Thus, it creates for Primovie a strong and long-term relationship.”