Listed Swedish property company Kungsleden AB (publ) is acquiring a retirement home property in Werder, about 15 miles southwest of Berlin, for approximately €16.4 million (SEK 150 million), including transaction costs.
This property was built in 2005 and is attractively located with just over 10,000 m² of lettable floor-space and accommodation for 190 residents. The rental value is approximately €1.2 million (SEK 11 million) while the property yield is 7%.
"This property is fully let for about a year, and is another building-block in our German retirement homes initiative, which began last year. We have high hopes of making more acquisitions, because the ownership of retirement home properties in Germany still remains fragmented," commented Kungsleden's Chief Executive Thomas Erséus.
Kungsleden is scheduled to take possession on 1 April.