European property group Patrizia said on Wednesday that it has acquired a portfolio of seven healthcare assets in Germany, on behalf of Patrizia Social Care Fund III, for an undisclosed amount.
The seller of the portfolio is Senioren-Wohnen Holding, a subsidiary company of advita and is also in charge of the development of advita properties.
Patrizia manages more than €1.3 bn of assets in the healthcare sector.
The portfolio includes one existing asset in Schwäbisch Hall plus six turnkey developments spread across Schwäbisch Hall, Offenburg, Bad Kreuznach, Bad Windsheim, Lauda Königshofen and Bad Mergentheim.
Once construction work is completed by 2023, the total portfolio will comprise 38,100 m2 of leasable space providing 329 units for assisted living, 240 daycare units, 146 units for dementia and intensive care facilities. Advita Pflegedienst, a major nursing service operator in Germany, will occupy the properties on individual 20-year leases.
Daniel Dreyer, head of transactions DACH at Patrizia, commented: ‘Over the last few years, we have looked to increase our exposure to social and healthcare real estate across Germany where demand has been steadily rising. Whilst the current Covid-19 pandemic has created some economic uncertainty, the investment market for healthcare real estate has remained resilient. We are confident this sector will continue to play a central role in the future.’
Patrizia was advised by Hogan Lovells.
