Belgian REIT Aedifica has signed an agreement with senior housing developer and operator Specht Gruppe to build 17 new care homes in Germany with a combined value of €200 mln.
The deal, reflecting an initial rental yield of around 5.5%, is Aedifica’s largest to date and follows a year of actively acquiring assets in Europe, including entering the Dutch care home market.
Under the agreement, a subsidiary of Specht Gruppe will build the homes, which will total 1,500 units and be located in urban and rural areas across several states in Germany. The homes will generally be located on care campuses which will also provide independent residential facilities for seniors, with care services available on demand.
The first homes are expected to be completed by the end of 2018 or beginning of 2019. The sites will be rented out to Specht Gruppe on 30-year leases. Aedifica said the operation will be financed from its credit facilities.
‘Not only does this agreement mark Aedifica’s largest transaction to date, it is also an excellent opportunity to purchase high-quality residential care facilities,’ commented Stefaan Gielens, CEO of Aedifica. ‘Located within a campus that offers a variety of accommodation and services, the 17 new “Pflegeheime” are intended for seniors requiring ongoing residential care and will cater to the mid- to high-end market segment. This agreement is a major step forward in the expansion of Aedifica’s German healthcare real estate portfolio.’
Aedifica previously worked with Specht Gruppe on the acquisition of eight care homes in Germany in 2014 for €60 mln.
The Belgian company expanded its care home portfolio significantly last year, acquiring assets in its home market, Germany, and the Netherlands, which it entered for the first time with the €30 mln acquisition of four nursing homes.
