AXA Investment Managers - Real Assets completes acquisition of a portfolio of 17 German healthcare properties for c. €310 million
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real assets investment and the leading(1) real estate portfolio and asset manager in Europe, announces that it has completed the acquisition of a portfolio of 17 healthcare assets in Western Germany from real estate funds managed by Blackstone for a total consideration of approximately €310 million. This transaction has been made on behalf of an investors consortium comprising AXA Insurance Companies as well as the two retail funds, AXA Selectiv’ Immo and AXA Selectiv’ Immoservice(2), both dedicated to retail investors mainly through life insurance contracts distributed by AXA France.
The 177,264 sqm portfolio comprises 16 freehold nursing homes and one rehabilitation centre and contains 2,788 beds for clients and patients in aggregate. The assets are operated under lease contracts with five separate operators, including one of Germany’s largest nursing home operators, which occupies 13 of the properties.
The majority of the portfolio is located in North Rhine-Westphalia, Germany’s most populous state, while two homes are in Baden-Württemberg, two in Bavaria and one asset is situated in Hesse. Based on demographic trends in these parts of Western Germany, the market for nursing homes is expected to experience further growth over the coming decade in response to a growing and aging population, enhancing the long-term appeal of such an investment.
This transaction extends AXA IM - Real Assets’ managed healthcare portfolio which now stands at more than €850 million of assets across Europe. AXA IM - Real Assets’ investment into the German nursing home industry follows healthcare investments in Italy and Spain in 2015, with best-in-class operators selected to expertly manage the running of each asset.
Hideki Kurata, Head of Alternatives & Special Situations, AXA IM - Real Assets, commented: “This significant transaction illustrates AXA IM - Real Assets’ continued commitment to alternative real estate asset classes and further strengthens our foothold across all of our preferred sub-sectors, with European healthcare demonstrating particularly favourable investment fundamentals. As evidenced across our €3.5 billion alternatives portfolio, we believe that working with the most suitable operating partners enhances an asset’s performance and allows us to successfully deliver value to our clients.”
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1 Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2016
2 AXA Selectiv’ Immo and AXA Selectiv’ Immoservice are managed by AXA REIM SGP, a subsidiary of AXA IM - Real Assets.
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