Patrizia expands social care fund into Netherlands

Global real assets giant Patrizia has acquired an assisted living complex and medical centre in Amsterdam, the Netherlands, on behalf of Patrizia Social Care Fund III. 

The transaction marks the fund’s first investment outside Germany. Financial details were not disclosed.

The 5,000 m2 asset was built in 2011 and is close to the centre of Amsterdam. A number of tenants, including local care provider Stichting Amsta, currently occupy the property, which has a weighted average lease term of over 10 years.

The acquisition follows significant investment in 2020 by Patrizia into the healthcare sector on behalf of Patrizia Social Care Fund III. The fund was launched in Q1 2019 to invest in pan-European healthcare assets, including modern and future-proof assets in the nursing home and assisted living sectors.

Patrizia invested €250 mln into 13 properties in Germany last year on behalf of the fund, bringing the total portfolio value to €360 mln across 19 assets.

This momentum has continued into 2021, with a further €200 mln of equity raised up to the end of the first quarter, including commitments from existing but also new institutional investors.

As a result, the fund has met its initial €350 mln equity target, providing it with €700 mln of firepower including leverage. In Germany and across Europe, strong growth is expected in all segments of age-appropriate housing over the coming years and there is a significant pipeline of potential transactions in place.

Jan-Hendrik Jessen, head of fund management operated properties at Patrizia, commented: 'We have made significant progress in the healthcare segment in recent months, including securing further equity commitments for Patrizia Social Care Fund III.

'The record transaction volumes in this sector delivered in 2020 are testament to our expert team’s ability to accelerate activity in one of our conviction sectors. The €200 mln of additional equity raised, while being a strong endorsement of the strategy, will also ensure that we have the firepower to secure further investment opportunities in this space.

'The acquisition of the property in Amsterdam is the first of the fund’s planned investments in the sector outside Germany and it enables us to capitalise on the strength of the pan-European market and the compelling underlying demographics to deliver strong returns to investors.'

Patrizia was advised by CBRE, Loyens & Loeff and Capital Value.


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