Principal Real Estate Europe, the European property arm of Principal Financial Group, has acquired another development project in the care property sector in Herne, Germany from developer Confirmus.
The investment volume was not disclosed.
The deal was executed by Principal Real Estate Spezialfondsgesellschaft for its special alternative investment fund Principal Care Invest I.
The property is a care home in development, situated on a 4,000 m2 site at Forellstrasse 44, Herne. Alongside 80 in-patient beds, the scheme comprises a meeting centre for Johanniter-Unfall-Hilfe's sheltered housing, as well as an Italian restaurant and an ice-cream parlour with outside seating.
The lettable area totals around 5,100 m2. Completion is scheduled for summer 2021 with Breeam being targeted.
The fund acquired an adjacent property, the Seniorencampus Herne-Baukau, in 2017. In both assets, Protea Care is the long-term tenant. The average lease term across the development is around 23 years.
'Because of the excellent work and decades of expertise of the operator Protea Care and the Johanniter-Unfall-Hilfe, we decided to seize the opportunity to acquire the final expansion of the campus with a second care facility,' said Paul H. Muno, managing director of Principal Real Estate Spezialfondsgesellschaft.
Law firm Dentons Europe advised the purchaser on legal aspects. Arcadis Germany carried out technical due diligence. Terranus of Cologne also acted as consultants.
