Patrizia has acquired a 6,500sqm nursing home development in eastern Germany on behalf of its Social Care Fund III fund.

The property, which was sold by Hentschke Bau for an undisclosed sum, will be operated by Casa Reha in a 20-year lease once completed.

Patrizia said the development in the city of Dresden, which will provide 145 bedrooms across four floors, is scheduled for completion by April next year.

Thomas Otto, a senior member of the Germany transactions team at Patrizia, said: “Once completed, this high-quality nursing home will provide best-in-class facilities which we expect will benefit from strong demand supported by local demographics.

“The long-term lease which has been signed with a well-respected and proven operator, namely Casa Reha, will ensure ongoing cash flow that delivers sustained returns to our investors.”

Patrizia currently has more than €1bn in assets under management in the healthcare sector, with around €560m in nursing homes.