Patrizia buys Frankfurt retirement home for reported €40m

German asset manager Patrizia Immobilien has bought a retirement home in Frankfurt for its specialist healthcare fund.

The Rebstockpark facility on Leonardo-Da-Vinci-Allee was built in 2010 and has more than 150 beds as well as 88 accommodation units, on a 6,300 m2 site.

The seller was developer Ried. The parties did not disclose the purchase price, but German media reported the value was close to €40 mln.

The asset was acquired for Patrizia’s Pflege-Invest Deutschland I special fund, which focuses on healthcare properties in German towns and cities with a population of 30,000 or more and lease terms of 20 to 25 years.

The care home has an occupancy rate of 90% and is operated by Margarethenhof GmbH on a 20-year tenancy agreement. The assisted living and independent living units are fully occupied.

‘There’s an undersupply of such properties in Frankfurt because the land is so expensive, and as a result there is only a restrained level of care property construction,’ said Johannes Altmayr, head of acquisitions at Patrizia.

‘There is absolute growth in the number of people needing care, so it can be safely assumed that occupancy levels will continue to rise.’

The proportion of the German population requiring care is projected to grow from 5% to 9% by 2030.