Primonial REIM announced it has finalised a sale and leaseback agreement for the acquisition of a portfolio of 12 senior residences in Germany on behalf of one of its funds.
The assets will be fully leased for a binding 20-year period to Advita Pflege, a German private provider of elderly care services. Ownership of each of these assets will be transferred as and when the conditions precedent have been met.
The portfolio of 513 apartments of assisted living, 290 beds in residential communities and 398 day-care places for a total surface area of more than 57,550m² across 12 residences: 5 new residences already in operation and 7 undergoing redevelopment or construction. It offers a broad range of services including day care, assisted living facilities as well as services for Alzheimer’s patients in shared housing and/or intensive care.
The residences cover 3 different Länder (7 in Saxony, 4 in Thuringia and 1 in Saxony-Anhalt) and are easily accessible as they are located in residential areas close to local facilities. As the population ages, Germany will require more care and dedicated structure. The shortage of beds in Germany is estimated at over 300,000 units, making this a promising market. Moreover, population statistics for the Länder of Saxony, Thuringia and Saxony-Anhalt are favourable as their share of over-80s will be above the German average according to projections for 2030 and 2060.
Grégory FRAPET, Chairman of the Executive Board at Primonial REIM, commented: “We are delighted to have finalised this agreement with Advita Pflege, which is part of our drive to help healthcare operators fulfil their need to develop real estate over the long term, in the interest of our investors and our funds. We are thus expanding our healthcare property portfolio further in Germany, which is a mature, deep and therefore strategic market.”
Matthias FAENSEN, CEO of Advita Pflege added: “We have developed the concept of the advita house with assisted living, housing communities and day care under one roof, in order to allow residents to preserve their self-determination and comfort levels in terms of independent living, while maintaining ties with the community and having access to all the services they might need. We are delighted to be working with an investor such as Primonial REIM, an expert in this asset class.”
Source : Company