Patrizia has added a mixed-use healthcare property in Hamburg to its portfolio.

The manager said its Pflege Invest Deutschland I fund has bought the 16,000sqm property from developer AVW Immobilien for an undisclosed sum.

The 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.

Jan-Hendrik Jessen, head of fund management operated properties at Patrizia, said: “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, 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.”

Patrizia currently manages more than €1bn healthcare sector assets, with €560m in nursing homes.