HIH Invest Real Estate’s open-ended German healthcare real estate fund has acquired its second asset.
HIH Vita Invest has invested an undisclosed amount to buy the recently constructed Telos Clinic Liblar building located at Radmacherstraße 83 in the Liblar district of Erftstadt in North-Rhine Westfalia.
HIH Invest said the 3,500sqm asset has been let to Systeam GmbH & Co on a 25-year lease.
The deal represents the second acquisition for HIH Vita Invest, a fund categorised as an Article 8 product under the EU Sustainable Finance Disclosure Regulation. HIH Vita Invest’s first asset is a health centre in Michendorf near Potsdam.
The fund targets new and as-new existing medical facilities, outpatient care facilities and senior-living buildings on long-term leases to operators with strong credit ratings.
HIH Vita Invest targets a volume of at least €200m, of which up to 50% is debt capital on a portfolio basis, the manager said.
Henriette Benassi, head of transaction management social and healthcare at HIH Invest, said: “Through the long-term lease agreement, we generate a secured cashflow for the fund.
“The clinic is designed for extensive treatment periods of six months on average, which, together with occupancy and supply contracts from the pension insurance and health insurance funds, ensures a high degree of planning security.”
Carsten Demmler, managing director of HIH Invest, said: “With the HIH Vita Invest fund, institutional investors have the opportunity to participate in the growth areas of assisted living, outpatient forms of care, and medical facilities.
“An important advantage of this segment is its independence from short-term market and economic fluctuations. Increasingly, private capital is needed to meet the additional demand for senior living and treatment places.
“At the same time, HIH Vita Invest offers the opportunity to cover various ESG aspects when investing.”
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