Swedish property company Kungsleden is acquiring two retirement homes near Dusseldorf for almost EUR 15 mln, reflecting a yield of 6.7%. The transaction is part of the company's strategy to build up a portfolio of EUR 533 mln of retirement homes holding in Germany by the end of 2008.
Swedish property company Kungsleden is acquiring two retirement homes near Dusseldorf for almost EUR 15 mln, reflecting a yield of 6.7%. The transaction is part of the company's strategy to build up a portfolio of EUR 533 mln of retirement homes holding in Germany by the end of 2008.
The two latest properties are in Bocholt, 64 km north of Dusseldorf and have a lettable floor space of just over 6,300 m2 to accommodate 150 residents. They were built in 2002 and 2004 and generate a joint rental value of almost EUR 1 mln. The two homes are operated by Azurit-Rohr, a company already operating around 15 similar properties throughout Germany. Rental agreements with Azurit-Rohr are for 20 and 22 years and Kungsleden is expected to take possession on 19 October.
'This acquisition is another step on the way for our retirement homes initiative in Germany,’ commented Kungsleden’s CEO Thomas Erséus. 'The properties satisfy our investment criteria well, and the long-term agreements create high and stable returns for the long term.'
Kungsleden is also collaborating with Residenz Gruppe on the building of eight retirement homes with a total investment of EUR 52 mln. Click on the link below for more information.
