Primonial REIM adds to German healthcare portfolio

Pan-European asset manager Primonial REIM has acquired two investment portfolios in Germany in the healthcare field.

The properties will be added to its real estate fund ESI, an open-ended alternative investment fund under Luxembourg law, which is aimed at institutional investors and invests in socially responsible real estate across Europe.

Financial details were not disclosed, but Primonial said the deals brought the volume of ESI to over €450 mln.

The properties include a 30,000 m2 building complex in Potsdam, currently under renovation. Comprising seven buildings in total, the former boutique hotel is being converted for future use as a clinic for psychiatry, psychosomatics and psychotherapy. The renovation includes the listed Bavarian House. In addition, 15 to 20 patient beds are planned in a new building that will replace an existing building.

The project developers are Germany's Oberberg Kliniken, that specialises in the treatment of mostly privately insured patients with psychiatric and psychosomatic illnesses. The Oberberg Group will operate the entire site under a 20-year lease. The clinic is due to be handed over in the second half of 2022.

The second deal comprises a 19,333 m2 private clinic comprising 75 patient beds, acquired from the Parkklinik Group. Specialising in psychosomatic diseases, the clinic is scheduled to start operations in the second half of 2023. The operator is Parkklinik Hornbach Betriebs under a 20-year lease.

Oliver Spiewak, head of transaction management at Primonial REIM Germany said: 'We are very pleased to have acquired these two healthcare properties in Germany.

'This will enable us to better meet the population's steadily increasing demand for health infrastructures and better support the operators of health facilities, with whom we want to establish close, long-term relationships, in real estate matters.'

Peter Finkbeiner, CEO of Primonial REIM Germany said: 'These transactions are an excellent example of the synergies that we want to create with our pan-European real estate platform Primonial REIM. This includes the use of local expertise to identify promising real estate projects for customers and investors across Europe.'

Primonial REIM has been a pioneer and leader in the healthcare real estate sector since 2012, with assets under management of €10 bn, and continues to expand across Europe from its four offices in France, Germany, Luxembourg and Italy.

Primonial REIM Germany was advised on these two purchases by GSK Stockmann Berlin (legal issues) and L + P Technical Advisory (technical / operational aspects).


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