Preliminary agreements have been reached between investor Icade and dependency care provider ORPEA to a nine nursing home portfolio for €145million.
The nursing home portfolio consists of nine properties – eight are in Germany and the other is in Marseilles, France.
The nursing home portfolio acquisition is part of a sale-and-leaseback transaction between the two parties. ORPEA, which developed most of these facilities, will lease and continue to operate them.
The nursing home portfolio includes 906 beds and 143 apartments covering a total floor area of 55,043 square metres and are new or recently-built properties.
Four of the eight nursing home assets in Germany are currently being built and scheduled for completion in H2 2020.
The average unexpired term of the new leases that start from the date of acquisition is 14 years.
This transaction with the ORPEA Group marks the first step of a long-term partnership between the two companies. For example, the ORPEA Group and Icade will remain co-investors in three facilities in Germany.
These nursing home acquisitions, subject to clearance from Germany’s Competition Authority, are expected to be finalised in Q3 and Q4 2020 depending on the facility.
Olivier Wigniolle, Chief Executive Officer of Icade, says, “This first transaction with ORPEA, one of Europe’s leading elderly care specialists, is fully consistent with Icade’s strategy to help large healthcare operators successfully execute their expansion strategy in Continental Europe. It furthers Icade’s international diversification strategy with respect to its healthcare property investments. This deal brings the total to €580m in international investments made by the Healthcare Property Investment Division to date, including c.€390m in Germany, one of the three countries targeted outside France. The healthcare property investment market has remained active and we are confident that it will continue along this trajectory.”
High investor interest
Yves Le Masne, Chief Executive Officer of ORPEA, says, “This first sale-and-leaseback transaction with Icade, one of Europe’s major players in healthcare real estate, is fully in line with ORPEA’s strategy to continue to own 50% of the facilities it operates. In addition, ORPEA will remain a co-investor with Icade in some of the properties, making the partnership even more solid and beneficial. This transaction has been carried out as part of a disposal plan, totalling over €1.5 billion in assets to be sold over the 2020–2024 period. Institutional investors’ interest in healthcare real estate remains high and demonstrates the strength and resilience of the long-term care industry.”
Icade designs innovative real estate products and services adapted to new urban lifestyles and habits. As an office and healthcare property investor, Icade had a portfolio value of €11.5bn as at the end of 2019 on a proportionate consolidation basis and as a property developer, it had revenues of nearly €1billion in 2019. Icade is a significant player in the Greater Paris area and major French cities. Icade is listed on Euronext Paris as a French Listed Real Estate Investment Company (SIIC). Its leading shareholder is the Caisse des dépôts Group.
Founded in 1989, ORPEA is one of the major world leaders in long-term care, with a network of 1,014 facilities comprising 104,234 beds (20,932 of which are under construction) across 22 countries.
First industrial estate purchase for €41m programme
A multi-let industrial estate in Aylesford, Kent, is the first purchase for a new programme by PATRIZIA on behalf of Caisson Investment Management.
The 42,000 square meter Quarry Wood Industrial Estate is the first UK purchase for the new mandate and more are planned to follow.
The new programme is aimed at assembling a portfolio in the industrial sector, which has remained resilient throughout the lockdown and continues to be underpinned by strong market fundamentals, principally the growth in online shopping.
Quarry Wood Industrial Estate has 27 units let to 18 tenants. Occupiers range from local, regional and national businesses in manufacturing, distribution and e-commerce.
The six-hectare site is between Junction 4 and 5 of the M20, providing excellent transport links to the M25, Central London, the Channel Tunnel and Kent’s ports.
Jamie Younger, Head of Transactions UK & Ireland at PATRIZIA, says, “We are pleased to be working with Caisson as our asset manager on this latest mandate, focusing on an area of the market that has successfully withstood the challenges of COVID-19. Industrial real estate has delivered robust rent collection rates over the last few months and continues to be underpinned by long term structural resilience, including the growth of e-commerce and last-mile delivery.
“Quarry Wood Industrial Estate is a popular, well-located multi-let industrial estate that provides diversity of income. The site also has potential institutional quality, which will be delivered through the active asset management expertise and specific sector strengths of PATRIZIA and our partner, Caisson.”
Excited by acquisition
Philip Stott, Investment Partner at Caisson Investment Management, adds, “We are excited by PATRIZIA’s acquisition of Quarry Wood Industrial Estate which commences our seventh mandate with them. The UK multi-let industrial sector has proven to be robust through these challenging times and we are pleased to have efficiently executed the transaction during lockdown; all credit to the wider team and our advisors.”
PATRIZIA and Caisson were advised by Gerald Eve. Lewis & Partners represented the vendor.
PATRIZIA manages more than €45 billion in assets and employs over 800 professionals at 24 locations worldwide.
Bory Business Park land sold
Penta Real Estate has sold land at Bory Business Park to the Karimpol Group development company.
The 60,000 square meter lot is in the new Bory district in Bratislava and was sold with a building permit.
The project allows the construction of retail space with the possibility of combining showrooms, offices and storage. Both parties have agreed that the transaction value will not be disclosed.
Juraj Nevolník, Managing Director at Penta Real Estate Slovakia, says, “Since our long-term strategy is to focus mainly on the residential and office market, we have decided to sell the plot land intended for this type of project. We are very pleased to conclude this cooperation with a foreign investor who is planning to build commercial spaces combined with showrooms, offices and storage in this location.”
Dr. Edik T. Plätzer, Managing Partner at Karimpol Slovakia, says, “The acquisition of Bory Business Park represents a unique opportunity for our company to strengthen our presence in the market which we consider to be particularly promising even in today’s situation. Also, the development level of the newly emerging Bory district was a significant driver in our decision-making, and I also believe that with our planned Squarebizz Business Park Bory focusing on small and medium-sized companies we will contribute to the attractiveness of this location.”
Bory has a shopping and entertainment centre – Bory Mall – and several other large retail buildings. Bory district will also include a New Generation Hospital, built by Penta Real Estate, which will be capable to provide healthcare for patients from all over Bratislava. It will are also include a residential district – Bory Bývanie, which will bring more than 1000 residential units, in its first four phases and a kindergarten. The transport infrastructure, including a connection to the D2 highway, is already built.
Off-market distribution unit bought
InfraRed Capital Partners Limited has completed the off-market acquisition of a 151,000 square feet single distribution unit in Sheffield for £13.3million.
The asset is a parcel distribution warehouse near Sheffield city centre. The unit is let to Royal Mail Group Limited for eight years. The site is the largest and busiest Parcelforce depot in the UK, handling around 20,000 parcels per day.
It is the latest in a series of purchases for the InfraRed Urban Logistics Income Fund (IULIF), which targets high-quality urban logistics assets within a 20-minute drive time of the UK’s top 10 city centres.
The fund is seeking to capitalise on the growing demand/supply imbalance in urban logistics assets in city fringe locations, and which is anticipated to grow as e-commerce and urban decentralisation activities continue to expand.
The fund expects that these trends will lead to income outperformance over the medium term, in those assets best positioned to satisfy occupier demand.
Dean Harrison, Investment Director at InfraRed Capital Partners, says, “Located within a short drive of Sheffield City Centre and benefitting from immediate access to the M1 motorway, the unit’s suitability for e-commerce driven occupiers has underpinned the investment rationale.
“We continue to see our urban logistics assets benefit from densification trends and the accelerating adoption of e-commerce among consumers, particularly in the wake of COVID-19. We will look to expand our urban logistic holdings in the UK and Western Europe throughout 2020 and beyond with substantial capital available for deployment.”
Commercial Property Partners, Taylor Wessing and Malcolm Hollis acted for InfraRed.