Spanish fund manager Azora has created a new Socimi, or REIT, together with Indosuez Wealth Management Spain and Banca March, that plans to invest €250 mln in senior housing.
Adriano Care, as the new REIT is called, has been formed with €120 mln of equity coming from Indosuez Wealth Management and Banca March’s private banking clients, in addition to a direct co-investment by Azora and Banca March itself.
The REIT will focus on acquiring senior homes with value-add potential through repositioning and refurbishment. The assets will be let on long-term triple net contracts.
Azora said it has identified investments worth more than €600 mln and is in final negotiations and closing of transactions worth more than €100 mln.
The company will trade on Madrid’s alternative stock exchange (Mercado Alternativo Bursátil español).
‘With this new venture we tackle a new real estate segment, honouring our DNA of investing in mega-trends, and alongside tier one financial institutions,’ says Concha Osacar, founding partner of Azora.
The Spanish senior homes sector is currently a very fragmented market with the 10 largest operators holding only 25% of the total available beds.
The ‘bed cover ratio’ for seniors over 80 years in Spain is 13%, well below the European Union average of 18%. This mismatch between the available supply and growing demand will generate a need for 100,000 additional beds in the next 10 years.
According to Azora, there are 5,800 senior homes in Spain providing 375,000 beds, representing a wide asset base with ample opportunities for upgrading and adding value.
Antonio Losada, CEO of Indosuez Wealth Management Spain, commented: ‘We are delighted to have agreed the management of Adriano Care Socimi with Azora in order to offer this opportunity among our client base, backed by an evident mega-trend, which has successfully helped to covered all equity available in record time, and where Indosuez has provided 70% of total equity through its clients.’
