Aedifica acquires a senior housing site (DE)

Seniorenresidenz Laurentiusplatz

The Seniorenresidenz Laurentiusplatz senior housing site benefits from an excellent location in the centre of Wuppertal-Elberfeld (350,000 inhabitants, State of North Rhine-Westphalia). The office building (a protected monument which dates from the 19th century) was renovated and redeveloped into a residential care facility in 1998. The site has a capacity of 79 units, including 69 units oriented toward seniors opting to live independently with care services available on demand and 10 units for seniors requiring on-going assistance (rest home rooms). Aedifica has budgeted approx. €3m for renovation works. Operations of the site will continue during renovation works. Completion of the works is expected by the end of 2018.

 

The agreement for the acquisition of this site by Aedifica is subject to the usual outstanding conditions in Germany, which are mainly of administrative nature and which should be fulfilled during the summer of 2017. The purchase price will be paid and the property and full use of the building will automatically be acquired at that time. The contractual value amounts to approx. €5m. In time, Aedifica’s total investment (including the renovation), will amount to approx. €8m. The operation will be financed using Aedifica’s credit facilities.

 

The site is operated by an entity of the Medeor Seniorenresidenzen group (Seniorenresidenz Laurentiusplatz , a regional player on the senior care market in Germany. The group currently operates another of Aedifica’s sites. The lease established for the site is an irrevocable 25-year double net long lease. The initial gross yield amounts to approx. 6,5 %.

 

Stefaan Gielens, CEO of Aedifica, commented: "Shortly after its recent capital increase, Aedifica is pleased to continue the expansion of its healthcare real estate portfolio with a new investment in Germany. Aedifica purchased a multifunctional site, combining housing and care for seniors requiring on-going assistance and housing for independent seniors with care services available on demand. This site, a historic building situated in the city centre, is already operational and will be renovated by Aedifica. As demonstrated in Belgium, this strategy allows the Company to maintain a portfolio of high-quality buildings which generate attractive yields. Other investments will follow.”

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