Patrizia, acting on behalf of Patrizia Pflege Invest Deutschland I, has acquired a mixed-use property with the main emphasis on social- and healthcare-related uses, in Hamburg, Germany from the developer AVW Immobilien AG. The 16,000m² property comprises a 78-bed nursing home, 42 units of assisted living, as well as 51 residential units, several doctor’s practices, a kindergarten, an outpatient care facility, retail space and minor office entities. The principal tenant of the building is Doreafamilie, one of the leading providers of healthcare services in Germany, who is operating the nursing home on a new 20-year lease, which was signed during the acquisition process.
The property is located in Rothenburgsort, in central Hamburg, adjacent to the major regeneration of the city’s old free port at Hafencity. Over the last decade, the area has been transformed with new hotels, shops, office buildings, and residential areas, in what is considered to be the largest urban redevelopment project in Europe.
Jan-Hendrik Jessen, Head of Fund Management Operated Properties at Patrizia, commented: “This asset’s main focus is the burgeoning social- and healthcare sectors. This puts it in a strong position to deliver stable returns for our investors, combined with attractive retail and office space in a rapidly improving area of Hamburg. Furthermore, in close cooperation with the seller AVW Immobilien AG, we were able to replace the main tenant and sign a new long-term lease agreement during the due diligence process, with a leading healthcare operator with a strong covenant, thus further improving the risk profile of the asset.”