German listed residential property owner Deutsche Wohnen has acquired 30 nursing homes in Germany for a combined €680 mln.
The assets, located mainly in German metropolitan regions, provide 4,700 care places, adding to Deutsche Wohnen's existing portfolio of over 12,000 places.
Most (13) of the nursing facilities are situated in the Hamburg city area and were acquired from US investor Oaktree. In that transaction Deutsche Wohnen was advised by Terranus, which carried out business and technical due diligence on all 13 homes and examined their cost-effectiveness.
The other 17 facilities are located across the country and are fully let to well-known operators under long leases.
The €680 mln purchase corresponds to a return based on the expected EBITDA after completion of the integration of around 5%, the company said.
Michael Zahn, CEO of Deutsche Wohnen, commented: ‘Through the planned acquisitions of care facilities with above-average qualities and locations, we are systematically continuing our growth strategy in the nursing and assisted living segment.’
‘With over 12,000 nursing care places, we as one of the largest owners of nursing homes in Germany will benefit greatly from the positive macro trends in the nursing market,’ he added.
Deutsche Wohnen reported a net income of €652 mln for the first half of the year, down 2.9% on the year-earlier period. The company said its funds from operations (FFO I) increased 13% to €248.5 mln compared with the year-earlier period.