Berlinovo has sold the Pegasus care home portfolio to Deutsche Wohnen for €420 mln in a record deal.
The sale marks the largest transaction in Germany of its kind so far in 2016 and sginficantly reduces the liabilities of the former bad bank.
The portfolio includes a total of 28 fully-let nursing homes comprising 180,000 m2 of rental space and 4132 beds. The average contract term is 13 years and the current net annual rental income amounts to €27.3 mln. According to Berlinovo, the average vacancy is 15%.
'This portfolio is one of the largest transactions in the German market for nursing homes in recent years,' said Dirk Richolt, head of real estate Finance at CBRE, who advised Berlinovo. 'For us as a transaction advisor this benchmark deal is anomolous for this asset class.' In the first half of 2016, about €863 mln of care homes were transacted in Germany.
Located all over the country, the majority of the properties are in Bavaria, Baden-Württemberg, Rheinland-Pfalz and Nordrhein-Westfalen. Most were built during the 90s and early 2000s and belonged to the 13 different fund companies of the former Berliner Immobilien Holding (BIH), today Berlinovo.
Notarised on 5 August, the portfolio was sold as part of a structured bidding process and the deal was approved this week by the board of Berlinovo.
CBRE advised the seller.
