Italian asset manager Kryalos Sgr and French senior living and nursing home specialist Euryale have invested €20 mln to acquire four health care facilities in Italy.
The deal was conducted through the dedicated closed-end real estate investment fund, Euryale Healthcare Italia 1, specialising in the healthcare sector.
The four properties have 289 beds and are located in the Northern Italian regions of Lombardy and Piedmont.
The 2,900 m2 senior living home in the province of Milan consists of eight studios, 16 double-room flats and 4 flats for a total of 52 beds.
The remaining three assets in the provinces of Como, Cuneo and Alessandria are mainly used as assisted living facilities.
The 4,300 m2 property in Como has 47 double rooms and 3 single rooms, for a total of 97 beds; the 3,700 m2 building in Cuneo has 33 rooms, with a total of 60 beds; while the 5,200 m2 Alessandria asset consists of four nuclei, each with 20 beds, for a total of 80.
The assisted living residence in Alessandria is leased to a leading manager of nursing homes for the elderly.
David Finck, CEO of Euryal, said: ‘These first acquisitions mark the start of the strategic partnership between Kryalos, with its in-depth knowledge of real estate in Italy and Euryale, with its specialised know-how in the healthcare sector. To confirm our European expansion and make new investments, our company will rely on both Kryalos' expertise and the growing demand in the Italian market. Already active in seven other countries, Euryale continues its development and strengthens the exposure of its healthcare real estate portfolio across Europe.’
Paolo Bottelli, CEO of Kryalos, added: ‘The healthcare sector has enormous potential for growth and development in Italy," said "where there is a documented shortage of healthcare facilities for the elderly compared to European standards, and significant resources have been allocated to this sector by the NRPR. These first four acquisitions and the establishment of a second fund represent the starting point for the work we are doing together with Euryale, with which we aim to invest €300 mln in Italy, with a main focus on the north of the country.’
In September 2022, Kryalos Sgr and Euryale set up the Euryale Healthcare Italia 2 fund with a pipeline of investments worth €120 mln, in the form of forward purchases.
The fund will acquire full ownership upon completion of the works, expected by 31 December 2024.
The real estate portfolio consists of eight predominantly healthcare properties in the provinces of Venice, Milan, Padua, Grosseto, Pavia (2), Monza, and Lodi, for a total of 1,280 beds that will be leased to leading Italian tenants.