Savills' former managing director Felix von Braun has launched Deutsche Pflegeheim Fonds (DPF), a Berlin-based investment management company focusing on nursing homes. The company, which invests in existing properties and development projects for senior citizens as well as non performing loans, is seeking to invest EUR 200 mln in the next 12 months.
Savills' former managing director Felix von Braun has launched Deutsche Pflegeheim Fonds (DPF), a Berlin-based investment management company focusing on nursing homes. The company, which invests in existing properties and development projects for senior citizens as well as non performing loans, is seeking to invest EUR 200 mln in the next 12 months.
According to Von Braun, DPF is currently in advanced negotiations to make its first investment, the acquisition of three German nurshing homes for around EUR 20 mln. 'We should purchase the first two assets over the next month. We have already received financing from the banks and we are now negotiating funding for the purchase of a third property,' Von Braun told PropertyEU in an interview. The company is also looking at two nursing home portfolios, he adds.
DPF, which targets both private and institutional investors, plans to transfer the new assets to a new closed-end fund which will be launched in the next months. The vehicle will seek to distribute returns of 6.5% per annum.
'Demographic changes are fuelling demand for new nursing home properties, whose investment market is estimated to be at EUR 1-2 bn per year,' he says. The length of the leases and the low risk of insolvency contribute to making it an attractive investment opportunity, he adds.
DPF was launched in early 2010 and its managing board includes Wolfram Otto, the managing director of health clinic operator Polikum Gruppe, while its supervisory board comprises Dirk Beidokat, CFO of Berlin-based nursing home specialist Renafa.
