Pan-European property investor Patrizia Immobilien has launched its third healthcare fund with a focus on care properties in Germany.
The ‘Patrizia Social Care Fund III’, which has an initial target volume of €300 mln and a long-term target of €700 mln, has inked its first deal, acquiring three new care homes in Germany for an undisclosed sum.
'This new fund builds on our existing track record and expertise in the German healthcare sector, a market which continues to experience strong investor demand with 2018 transaction volumes around 150% of those in 2017,' said Jan-Hendrik Jessen, Patrizia’s head of fund management operated properties.
'The fund aims to have around 50% of its assets dedicated to assisted living properties in Germany. In addition, the fund will also look to invest in select European markets as well as in Germany,' Jessen added.
Patrizia already has 56 healthcare assets under management in Germany worth more than €900 mln within its two predecessor healthcare funds.
The newly acquired assets will provide a total of 128 living facilities and 196 day care places, and are due for delivery in 2020. The homes are let on 25-year leases to operators Kursana, QualiVita-Gruppe and Advita. Two of the care homes are located in the German state of North Rhine-Westphalia with the other in Saxony.
