European real estate investment manager Principal Real Estate Europe, formerly Internos Global Investors, has acquired the first property for the Principal Care Invest II fund from municipal utility company Stadt + Projektentwicklung.
The Vitahris health centre in Bad Neuenahr, Rhineland Palatinate, comprises around 6,500 m2 of lettable space over five floors. The transaction volume was not disclosed.
According to Principal, the asset includes surgeries and offices on the upper four floors covering 5,200 m2, with 1,300 m2 of retail accommodation on the ground floor. Most of the tenants are medical practices, while others include a pharmacy and the Kamps bakery chain. The property is currently 95% let, with a weighted average unexpired lease term of more than five years.
Principal Care Invest II focuses on care homes, outpatient facilities, sheltered housing and rehabilitation clinics with psychiatry, gerontology and oncology functions, as well as medical care centres in Germany. The fund has an investment volume of around €300 mln, of which up to €150 mln is equity.
BFS Service advised on the transaction on behalf of Principal. DLA Piper LLP provided legal advice and ChandlerKBS was responsible for technical issues.
