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BNP Paribas Real Estate Investment Management (REIM) recently acquired an extensive nursing home portfolio of more than 500 beds in Germany for Healthcare Property Fund Europe (HPF Europe) real estate fund. The portfolio’s five assets are the first acquisitions for the fund, which was launched in the first semester of this year. The vendor is a partnership vehicle between AG Real Estate and Cardif Lux Vie owning a wide portfolio of nursing homes all over
Germany. AG Real Estate is the real estate subsidiary of AG Insurance and the real estate consultant of Ageas. AG Real Estate manages a portfolio of diversified assets as an integrated operator.
“The European healthcare sector is characterized by above-average growth opportunities and considerable stability. This well-positioned portfolio will give the fund access to the particularly interesting German healthcare market”, explains Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany. “This first acquisition is a significant milestone for HPF Europe as it fully fits with the targeted € 1bn investment strategy we built for HPF Europe, given the quality of the assets and their location on the German market ”, adds Paul Darribere, Fund Advisor of HPF Europe.
The portfolio comprises five healthcare properties representing over approx. 23,500 sqm in total rental area. The properties, which are primarily used as nursing homes with some assisted living units, feature 435 nursing home rooms and 19 assisted living units. The portfolio is geographically diversified throughout Germany with assets located in the states of North-Rhine Westphalia, Lower Saxony, Saxony and Hesse. The occupancy rate at the facilities is currently almost 98%. The five properties are run by two companies with an excellent reputation on the German nursing home market: Alloheim, the second-place leader on the German market, runs three of the five nursing homes and Dorea, a subsidiary of the French Maisons de Famille group, operates the two other assets. The assets boast a high WALT of 17.1 years and even up to 23.5 years including lease renewal options.
HPF Europe is a SICAV-SIF based in Luxembourg. This Core open-end fund, managed by BNP Paribas REIM Luxembourg, offers exposure to international institutional investors across all segments (short stay, medium stay & long stay) of the Eurozone Healthcare sector with a solid distribution yield. HPF Europe successfully raised close to € 200mn of equity commitments in the first half of the year alone. Investor interest in HPF Europe is significant and further equity commitments are expected soon. The fund also continues to look for additional assets that meet the requirements of its investment profile.
Clifford Chance acted as legal advisor to the buyer and Orange Recon as technical advisor. The off-market deal was brokered by Cushman & Wakefield.