Belgian healthcare REIT Aedifica has expanded into Spain through a partnership with local player Neurocare Home.
The parties have the ambition to develop an initial portfolio of approx. 1,000 units, an investment of €75 mln.
In the first phase of this cooperation, up to five development projects are expected to break ground in the course of 2022, located in the regions of Madrid, Castile-León and Andalusia. Aedifica has already acquired a plot of land in Castile-León.
Stefaan Gielens, CEO of Aedifica, commented: 'Aedifica and Neurocare Home have embarked on an ambitious long-term partnership in which we will combine our extensive experience in the development, investment and operating of healthcare real estate.
'Aedifica will invest in new future-proof elderly care homes that will be developed and operated by Neurocare Home. Through this partnership, we add an eighth country to our portfolio, thus ensuring further diversification.'
Neurocare Home will develop and operate the care homes on the basis of triple net 30-year leases, with initial rental yields expected at approx. 5.5%.
Added Gielens: 'Spain provides an attractive investment opportunity for Aedifica, as the care market is still relatively fragmented and the ageing population and a lack of adequate senior housing will lead to increasing demand for high quality healthcare real estate.
'We are very pleased with this important step forward in our European growth story and we are already working on the further development of our activities in Spain.'
Diego Ortega, executive director of Neurocare Home, added: 'Our alliance with Aedifica will allow us to grow and generate a large number of jobs in the coming years, developing innovative care properties that are fully adapted to the needs of the elderly, which differentiates Neurocare Home not only for its excellence in care and quality of service but also for its industry-leading care homes.'
The partnership plans to develop an innovative residential care concept that capitalises on the previous operating experience of the Neurocare Home management team in Spain and the lessons learned during the Covid-19 pandemic.
The homes will focus on single rooms with ensuite bathrooms and will offer residents the opportunity to live in small-scale communities. In addition, green open-air patios will be included on each floor. Specific attention will also be paid to the sustainability of these new buildings.
