Sector specialist Citivas Investment Management has bought 26 care homes and assisted living properties for €300 million.
It is the first time the UK’s largest investor in specialist community-based care real estate has entered the sector in Germany.
The homes, which are mainly in Berlin and Hamburg, were sold by Deutsche Wohnen, a subsidiary of Vonovia SE, the largest listed residential landlord in Europe.
The investment was made by the Civitas European Social Infrastructure Fund.
Citivas enters long-term lease agreements
At the same time, Civitas is entering into long-term lease agreements for the 3,000-plus bed portfolio with Alloheim Group which will acquire the incumbent operator, Katharinenhof and continue to deliver high-quality care and support for the residents.
Alloheim is Germany’s number one care operator with 265 care and assisted living homes.
Civitas European Social Infrastructure Fund was established in 2022 and invests in high-quality support and care-based community housing, education and healthcare facilities across a selection of major Western European markets.
Civitas seeks investments with income underpinned by insurances, governments or local municipalities.
The portfolio meets Civitas’ ESG investment criteria of delivering positive social impact in local communities and improved environmental considerations through an extensive capital expenditure programme which aims to see more than half of the portfolio achieve an EPC rating A.
ESG measures to limit carbon emissions
In addition, Civitas and Alloheim have agreed lease obligations which aim to minimise carbon emissions from the operation and occupation of the properties.
The latest investment takes Civitas’ total European capital commitment to over €450 million and the company is actively seeking to expand across major Western European markets in social infrastructure assets targeting €1 billion to be deployed short term.
Nikolay Velev, Head of Europe, Civitas Investment Management says, “This investment is particularly important for Civitas, marking our entry into the German market and significantly expanding our European presence, where in the short to medium term we are seeking to deploy up to €1 billion into investments in high-quality assets and locations with strong operators.
“The European later living market is no longer a nascent sector but is an established and fast-growing segment. It represents a highly attractive risk-return proposition with inherent downside protection to our investors through its positive supply/demand imbalance, legislative and obligatory funding, and strict regulatory oversight to ensure quality of care provision. We are delighted to be partnering with Alloheim, a highly regarded care operator, which shares our ethos of delivering exemplary customer service.”
Tom Rietz, Managing Director, Alloheim Group, says, “We are delighted to expand our footprint with the acquisition of a high-profile operator such as Katharinenhof and to enter into a new long-term partnership with Civitas with whom we share a common commitment to providing best in class care, support and suitable accommodation for the later living community. We look forward to expanding further our relationship with bolt-on acquisitions.”
Civitas was advised by TSC Real Estate, Greenberg Traurig, PwC, Drees & Sommer and Savills.
Civitas Investment Management Limited Civitas is the UK’s largest investor in specialist community-based care real estate, with over £3.5 billion under advisory.
