- First healthcare investment outside Germany for Social Care Fund III
- Purchase agreement signed for acquisition of c. 5,000 sq m assisted living complex in Amsterdam
- c. EUR 250 million of healthcare assets acquired for Social Care Fund III in 2020
- Further EUR 200 million of equity raised in Q1 2021, reaching the Fund’s initial planned equity target of EUR 350 million
Augsburg/Amsterdam, 22 June 2021. PATRIZIA AG, a leading partner for global real assets, has signed a purchase agreement to acquire an assisted living complex and medical centre in Amsterdam, the Netherlands, on behalf of PATRIZIA Social Care Fund III. The transaction marks the Fund’s first investment outside Germany and is expected to close in October 2021.
The acquisition follows significant investment in 2020 by PATRIZIA into the healthcare sector on behalf of PATRIZIA Social Care Fund III. The Fund was launched in Q1 2019 to invest in pan-European healthcare assets, including modern and future proof assets in the nursing home and assisted living sectors. PATRIZIA invested c. EUR 250 million into 13 properties in Germany last year on behalf of the Fund, bringing the total portfolio value to c. EUR 360 million across 19 assets.
This momentum has continued into 2021, with a further EUR 200 million of equity raised up to the end of the first quarter, including commitments from existing but also new institutional investors. As a result, the Fund has met its initial EUR 350 million equity target, providing the Fund with EUR 700 million of firepower including leverage. In Germany and across Europe, strong growth is expected in all segments of age-appropriate housing over the coming years and there is a significant pipeline of potential transactions in place.
The newly acquired c. 5,000 sq m property was built in 2011. It is close to the centre of Amsterdam and benefits from exceptional transport links, as well as a wealth of local amenities. A number of tenants, including local care provider Stichting Amsta, currently occupy the property, which has a WALT of over 10 years.
Jan-Hendrik Jessen, Head of Fund Management Operated Properties at PATRIZIA, commented: “We have made significant progress in the healthcare segment in recent months, including securing further equity commitments for PATRIZIA Social Care Fund III. The record transaction volumes in this sector delivered in 2020 are testament to our expert team’s ability to accelerate activity in one of our conviction sectors. The EUR 200 million of additional equity raised, while being a strong endorsement of the strategy, will also ensure that we have the firepower to secure further investment opportunities in this space.
“The acquisition of the property in Amsterdam is the first of the Fund’s planned investments in the sector outside Germany and it enables us to capitalise on the strength of the pan-European market and the compelling underlying demographics to deliver strong returns to investors.”
PATRIZIA is an experienced, conscientious and leading investment manager in the healthcare sector with 73 assets under management worth more than EUR 1.4 billion within its healthcare funds.
PATRIZIA was advised by CBRE, Loyens & Loeff and Capital Value.
PATRIZIA: A leading partner for global real assets
As a company with operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 37 years. PATRIZIA manages more than €47 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Foundation, the company is committed to social responsibility. The Foundation has helped over 230,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 21 years. You can find further information at www.patrizia.ag
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