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PATRIZIA acquires mixed-use healthcare property in Hamburg

PATRIZIA continues to increase exposure to growing healthcare sector

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  • 16,000 sq m building with elderly housing, kindergarten, residential, office and retail space
  • One of the leading German healthcare providers, Doreafamilie, has signed new 20-year lease as principal tenant

Augsburg/Hamburg, 5 December 2019. PATRIZIA AG, the global partner for pan-European real estate investment, announces the acquisition of a mixed-use property with the main emphasis on social- and healthcare related uses, in Hamburg, Germany, on behalf of PATRIZIA Pflege Invest Deutschland I from the developer AVW Immobilien AG (Hamburg).

The 16,000 sq m property provides multiple uses including a 78-bed nursing home, 42 units of assisted living, as well as 51 residential units, several doctor’s practices, a kindergarten, an outpatient care facility, retail space and minor office entities. The principal tenant of the building is Doreafamilie, one of the leading providers of healthcare services in Germany, who is operating the nursing home on a new 20-year lease, which was signed during the acquisition process.

The property is located in Rothenburgsort, in central Hamburg, adjacent to the major regeneration of the city’s old free port at Hafencity. Over the last decade, the area has been transformed with new hotels, shops, office buildings, and residential areas, in what is considered to be the largest urban redevelopment project in Europe.

Jan-Hendrik Jessen, Head of Fund Management Operated Properties at PATRIZIA, commented: “This asset’s main focus is the burgeoning social- and healthcare sectors. This puts it in a strong position to deliver stable returns for our investors, combined with attractive retail and office space in a rapidly improving area of Hamburg. Furthermore, in close cooperation with the seller AVW Immobilien AG, we were able to replace the main tenant and sign a new long-term lease agreement during the due diligence process, with a leading healthcare operator with a strong covenant, thus further improving the risk profile of the asset.”

The purchase follows the acquisition of a healthcare property in Saxony, close to Dresden and marks the final investment for PATRIZIA Pflege Invest Deutschland I, which is specialised in the healthcare sector. The success story will continue with PATRIZIA Social Care Fund III, a secondary investment product, newly launched at the beginning of this year which already acquired the first properties.

PATRIZIA currently has more than EUR 1 billion AUM in the healthcare sector, with circa EUR 560 million in nursing homes.

Doreafamilie currently operates 71 nursing homes in Germany with over 6,800 beds, 10 outpatient care facilities and more than 1,200 patients. The company employs around 5,000 staff members with an annual turnover of over EUR 240 million.

PATRIZIA AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages more than EUR 42 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.

Andreas Menke
Head of Corporate Communications
Phone: +49 (0) 821 5 09 10-6 55

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