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PRIMONIAL REIM FINALISES A SALE AND LEASEBACK AGREEMENT FOR THE ACQUISITION OF 12 SENIOR RESIDENCES IN GERMANY

Primonial REIM announced it has finalised a sale and leaseback agreement on Tuesday 19th March 2019 for the acquisition of a portfolio of 12 senior residences in Germany on behalf of one of its funds.

Primonial REIM announced it has finalised a sale and leaseback agreement on Tuesday 19th March 2019 for the acquisition of a portfolio of 12 senior residences in Germany on behalf of one of its funds.

The assets will be fully leased for a binding 20-year period to Advita Pflege, a German private provider of elderly care services. Ownership of each of these assets will be transferred as and when the conditions precedent have been met.

The portfolio of 513 apartments of assisted living, 290 beds in residential communities and 398 day-care places for a total surface area of more than 57,550m² across 12 residences: 5 new residences already in operation and 7 undergoing redevelopment or construction. It offers a broad range of services including day care, assisted living facilities as well as services for Alzheimer’s patients in shared housing and/or intensive care.

The residences cover 3 different Länder (7 in Saxony, 4 in Thuringia and 1 in Saxony-Anhalt) and are easily accessible as they are located in residential areas close to local facilities. As the population ages, Germany will require more care and dedicated structure. The shortage of beds in Germany is estimated at over 300,000 units[1], making this a promising market. Moreover, population statistics for the Länder of Saxony, Thuringia and Saxony-Anhalt are favourable as their share of over-80s will be above the German average according to projections for 2030 and 2060.

Grégory FRAPET, Chairman of the Executive Board at Primonial REIM, commented: “We are delighted to have finalised this agreement with Advita Pflege, which is part of our drive to help healthcare operators fulfil their need to develop real estate over the long term, in the interest of our investors and our funds. We are thus expanding our healthcare property portfolio further in Germany, which is a mature, deep and therefore strategic market.”

Matthias FAENSEN, CEO of Advita Pflege added: “We have developed the concept of the advita house with assisted living, housing communities and day care under one roof, in order to allow residents to preserve their self-determination and comfort levels in terms of independent living, while maintaining ties with the community and having access to all the services they might need. We are delighted to be working with an investor such as Primonial REIM, an expert in this asset class.”

In this transaction, Primonial REIM was advised by eRE (element Real Estate), Clifford Chance for the legal aspects and TA Europe for the technical aspects.

Advita Pflege was assisted by Cushman & Wakefield, Frankfurt/Main, and legally advised by CMS Hasche Sigle in Cologne.

 

About Primonial REIM

 

Primonial REIM is a portfolio management company that was authorised by the Autorité des Marchés Financiers (AMF) in 2011. Its purpose is to design and manage a range of investment vehicles that reflect its strong convictions about real-estate markets. Its aim is to make SCPI real-estate funds – investing in office, retail, healthcare/education and residential properties – available to the widest possible audience.

As a portfolio management company, Primonial REIM creates and manages real-estate CIUs for institutional and retail investors. On 10 June 2014, Primonial REIM obtained AIFM (Alternative Investment Fund Manager) authorisation from the AMF, under which it is subject to increased obligations in areas such as reporting, liquidity monitoring and risk management. Its Executive Board consists of Grégory FRAPET, Chairman, Stéphanie LACROIX, CEO and Tristan MAHAUT, Corporate Secretary. www.primonialreim.com

 

Key figures at 31st December 2018: 58 920 investors // € 17.2 billion assets under management // 3 817 380 m² of real estate assets managed // 7 000 tenant companies

 

[1] Source: YCC, 2019

 

PRIMONIAL press contacts

Mélodie BLONDEL

melodie.blondel@primonial.fr +33 1 44 21 71 48  +33 6 74 05 12 44

Anne-Christine BAUDIN

anne-christine.baudin@primonial.fr +33 1 44 21 70 74  +33 6 70 21 91 42

Media agency – Citigate Dewe Rogerson

Alexandre DECHAUX

Primonial@citigatedewerogerson.com  +33 7 62 72 71 15

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