PATRIZIA launches new EUR 700m healthcare fund
Healthcare sector in Germany is much sought after by institutional investors.
- Third healthcare fund, builds on PATRIZIA’s expertise and success in this sector
- Supportive demographic trend driving institutional demand
- First acquisition already made – a three-property care home portfolio
Augsburg, 28 January 2019. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, has launched its third healthcare fund with a focus on care properties in Germany. The fund, ‘PATRIZIA Social Care Fund III’, which has an initial target volume of EUR 300 million and a long-term target of EUR 700 million, has already made its first acquisition: a portfolio of three new, high-quality care homes in Germany for an undisclosed sum.
PATRIZIA is an experienced, conscientious and leading investment manager in the healthcare sector with 56 assets under management in Germany worth more than EUR 900 million within its two predecessor healthcare funds.
Jan-Hendrik Jessen, PATRIZIA’s Head of Fund Management Operated Properties, commented: “This new fund builds on our existing track record and expertise in the German healthcare sector, a market which continues to experience strong investor demand with 2018 transaction volumes around 150% of those in 2017. The fund aims to have around 50% of its assets dedicated to assisted living properties in Germany. In addition, the fund will also look to invest in select European markets as well as in Germany. The portfolio of new, modern care homes acquired by the fund offers our clients sustainable, long-term income whilst meeting the growing demand for bed spaces due to a rising population of over 65s, who require the best environment for living and care.”
The three properties making up the newly acquired portfolio will provide a total of 128 living facilities and 196 day care places and are due for delivery in 2020. The homes are let on 25-year leases to experienced operators, Kursana, QualiVita-Gruppe and Advita, all of which have a strong track record and ethos in the management of care homes. Two of the care homes are located in the German state of North Rhine-Westphalia with the other in Saxony, which are both areas experiencing a growing over-65s demographic.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien 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 around EUR 40 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.
Head of Corporate Communications
Phone: +49 (0) 821 5 09 10-6 55