Independent, owner-managed firm REInvest is seeking to raise between €125-175 mln of equity for a new fund focused on German medical care real estate.
Luxembourg-based REInvest has already collected commitments of around 65% of the amount, and plans to launch the vehicle within the first quarter of the year.
With leverage of up to 50%, the fund - REInvest Outpatient Medical Infrastructure Germany - is targeting a size of about €250-€350 mln.
The new fund will invest in healthcare properties such as medical and health centres in selected cities with a population of at least 50,000 throughout Germany. The investment volume per property is expected to be in the range of €8 to 40 mln.
'We are looking for new buildings or existing properties from year of construction 2000 with an average remaining lease term of at least five years. The targeted return on equity is around 5%,' the company said.
'The need for real estate in the health sector will continue to increase in the next few years. We have designed our REInvest Outpatient Medical Infrastructure Germany for this trend and the corresponding demand,' commented Hans Stuckart, managing director of REInvest Asset Management.