Corpus Sireo raises €150m for 2nd health care fund

German group Corpus Sireo has raised €150 mln of equity from six German institutional investors for its newly launched CS Health Care II investment vehicle focussing on care homes.

With leverage of 50%, the vehicle is targeting a volume of €300 mln and aims to distribute a dividend of 6.5% per annum.

So far, the fund has already acquired eight care homes investing €35 mln, and contracts are due to be signed for a further two homes in the next few weeks.

'Our fund strategy is to achieve a long-term and sustainable investment in conjunction with stable dividend distributions,' said Marc-Philipp Martins Kuenzel, fund manager of the Corpus Sireo Health Care II fund. 'This is the reason why we are operating in the care home market segment. The performance of these assets is virtually immune to developments elsewhere in the economy. The assets focus on demographic developments in Germany, where the percentage of elderly persons in relation to the overall population is constantly increasing.This is the reason why German care homes are a popular and reliable form of investment.'

The CS Health Care II fund invests in care homes in Germany, focussing on new-build projects in Western Germany.

Corpus Sireo is a major German investor in the alternative health care asset class. Its CS Health Care Fund I, which is now fully funded, holds 46 homes in Germany representing a total volume of €430 mln.