ActivumSG Capital Management has bought a German senior housing developer for its third fund.
ActivumSG Fund III, managed by the value-add focused firm, has acquired 94% of WI-IMMOGroup, a private company based in Hildesheim, near Hanover.
The company generates annual sales of around €90m.
Saul Goldstein, founder and managing partner at ActivumSG, said: “Germany’s ageing population presents a compelling investment opportunity that we’re grabbing for our investors through WI-IMMOGroup’s market-leading platform.”
Goldstien said there was a “lot of investor interest in senior housing” in Germany.
He added: “Competition is pushing up asset prices, which is why we have gone down the developer route”.
Founded in 2008, WI-IMMOGroup sells units in care homes and retirement complexes that it has either developed itself or on behalf of operators and owners.
The company has a pipeline of 22 projects.
Frank Winkel, founder and chief executive, said: “With the support of our new shareholder, we are looking to broaden our footprint right across Germany and to step up the number of care-home units we deliver to around 1,000 a year, from about 650 currently.”
The investment means ActivumSG Fund III has committed nearly all of the €380m of equity it raised from investors by its final close in March 2014.
The fund’s other investments include real estate loans, residential developments and office and retail properties in Germany or Spain.