RREEF buys 7 nursing homes for EUR 95m

German investor RREEF Spezial Invest has acquired seven nursing homes in three separate transactions with real estate firms Semmelhaack and the Diringer & Scheidel group and a developer from Cologne. The transaction price amounts to a total of EUR 95 mln.

The assets, with a total of 670 beds, are earmarked for RREEF's Health Care I special fund. Two of the buildings are situated in the German city of Mannheim and the other five in Cologne, Seelze, Lehrte, Gladbeck and Göttingen.

Following the acquisition, the Health Care I vehicle has a portfolio comprising 15 buildings worth a total of EUR 190 mln. RREEF said it plans to acquire further nursing home developments on behalf of the fund in 2010.

'We have significantly enlarged the portfolio of the 'Health Care I' fund in 2009. Also for the year 2010 we are assuming that we will be able to secure other quality assets for the fund', said Georg Allendorf, head of RREEF Germany. Altogether, RREEF Spezial Invest has acquired 16 properties over the course of 2009 for a total investment volume of EUR 500 mln. 'We have made many off-market transactions for attractive prices for our clients', Allendorf added.

RREEF Spezial Invest currently manages seven real estate investment funds for institutional investors, with a total volume of around EUR 2 bn.