Belgian REIT Aedifica is acquiring a portfolio of eight rest homes in Germany for €60 mln, reflecting an initial gross rental yield of 7%.

Belgian REIT Aedifica is acquiring a portfolio of eight rest homes in Germany for €60 mln, reflecting an initial gross rental yield of 7%.

Seven of the properties are located in the German state of North Rhine-Westphalia and one is in Lower Saxony. All the rest homes were built between 2009 and 2011 in small cities with an average of 20,000 inhabitants.

The 642-bed portfolio is rented on 25-year leases to Residenz-Gruppe Bremen, the operator of 35 rest homes, assisted-living apartments and hospitals in Germany. Residenz sub-lets five of the Aedifica portfolio assets to local operators.

The lease contracts are a double-net structure under which repair and maintenance of the roof, structure and façade of the buildings remains the responsibility of the owner.

The transaction is expected to close before the end of the year once certain conditions are met. This will increase Aedifica's German portfolio to 13 rest homes with 1,135 residents and valued at more than €100 mln.