German real estate manager DLE Living is expanding its investment portfolio with the launch of its second fund dedicated to senior living and care properties.
The DLE Senior Living Fund II aims to raise €700 mln, with €350 mln in equity and is targeting an annual distribution yield of 5.5% to 6.5% over a ten-year term.
Institutional investors can participate in the Luxembourg-based fund with a minimum investment of €5 mln. The fund is designed to meet the requirements of Article 8 of the Disclosure Regulation, focusing on sustainable and responsible investments.
The fund will primarily invest in existing senior living properties, equally divided between assisted living and inpatient care facilities. Investments will target properties valued at €10 mln or more.
Alexander Fröse, managing partner of DLE Living, commented: ‘We want to create a housing and care offer that is just as suitable for active seniors at the beginning of retirement age as it is for people with a high level of care. An attractive micro-location with a high quality of living, good medical, social and cultural infrastructure as well as needs-based retail and connections to local public transport is essential. There should also be sufficient potential for nursing staff and, in the long term, opportunities for future employees to move in.’
The DLE Senior Living Fund II aims to build a high-performing portfolio of senior living and care properties, addressing the growing challenge of workforce shortages in the sector. The fund focuses on attracting and retaining skilled workers through a professional and adaptable operating structure.
Designed to appeal to institutional investors, the fund offers attractive investment sizes and a diversified portfolio across Germany. Investment decisions are made with a long-term vision, considering factors like workforce availability, local demographics, and the quality of each property's location.
DLE Living is actively acquiring properties for its new DLE Senior Living Fund II, with initial purchase agreements either underway or already finalized. Building on the success of its first fund, DLE Senior Living Fund I, which was fully placed in 2024 and is expected to generate a distribution yield of 5.5% this year, DLE Living is acting as an advisor for the new fund.
