BNP Paribas Real Estate Investment Management (REIM) has acquired an extensive nursing home portfolio of more than 500 beds in Germany for its newly launched healthcare property fund Europe (HPF Europe).
The portfolio’s five assets, representing over 23,500 m2 in rentable area, are the first acquisitions for the fund, which was launched in the first semester of this year.
The vendor is a partnership vehicle between AG Real Estate and Cardif Lux Vie, owning a wide portfolio of nursing homes all over Germany. AG Real Estate is the real estate subsidiary of AG Insurance and the real estate consultant of Ageas.
Isabella Chacón Troidl, chief investment officer of BNP Paribas REIM Germany said: 'The European healthcare sector is characterised by above-average growth opportunities and considerable stability. This well-positioned portfolio will give the fund access to the particularly interesting German healthcare market.'
'This first acquisition is a significant milestone for HPF Europe as it fully fits with the targeted €1 bn investment strategy we built for HPF Europe, given the quality of the assets and their location on the German market,' added Paul Darribere, fund advisor HPF Europe.
The properties are primarily used as nursing homes with some assisted living units, featuring 435 nursing home rooms and 19 assisted living units in total. The portfolio is geographically diversified throughout Germany with assets located in the states of North-Rhine Westphalia, Lower Saxony, Saxony and Hesse. The occupancy rate at the facilities is currently almost 98%.
The five properties are run by well known German nursing operators. Alloheim, the second-place leader on the German market, runs three of the five nursing homes and Dorea, a subsidiary of the French Maisons de Famille group, operates the two other assets. The assets boast a high weighted average lease term of 17.1 years and even up to 23.5 years including lease renewal options.
HPF Europe is a core, open-end SICAV-SIF based in Luxembourg. It successfully raised close to €200 mln of equity commitments in the first half of the year alone and further equity commitments are expected soon, according to BNP Paribas.
Clifford Chance acted as legal advisor to the buyer and Orange Recon as technical advisor. The off-market deal was brokered by Cushman & Wakefield.
