AviaRent fund acquires €185m German portfolio

Luxembourg fund manager AviaRent has acquired a portfolio of twelve nursing homes and assisted living properties in Germany for €185 mln.

The purchase was made on behalf of the European Social Infrastructure I (ESI I) fund launched two years ago in joint venture with French asset manager Primonial.

The properties, built between 1906 and 2001, comprise 958 rooms with more than 1,400 inpatient care places and 140 assisted living units.

Four of the twelve properties are located in Lower Saxony, three in Rhineland-Palatinate and two in Baden-Württemberg. One facility is also located in each of Saxony, North Rhine-Westphalia and Bavaria.

Oliver Spiewak, senior transaction manager at AviaRent Invest, said: ‘The successful conclusion of this major transaction confirms the growing investment potential in nursing care and assisted living properties. ESI I focusses on investments in qualitative assets in the sector to meet increasing demand from both investors and users.’

Sascia Hauke, head of acquisition at AviaRent Invest, said: ‘The undersupply of care places in Germany is attracting more and more attention, and the provision of care facilities continues to fall far short of the minimum required. Against this backdrop, we are planning to acquire further facilities across Germany, including a number of facilities across Europe for our ESI I fund.’

Launched in 2018, ESI I focuses exclusively on social infrastructure in Europe. The open fund is expected to reach an estimated volume of €1 bn with a planned annual distribution of 5-6%.

Strategically, the ESI I focuses on European countries such as – Germany, Austria, France, Belgium, Netherlands, Italy, Portugal, Spain and Ireland. The ESI I invests not only in care homes, age-appropriate and assisted living but also in clinics, schools, kindergartens, family-friendly and affordable living, as well as small housing units.