ActivumSG Capital Management (ASG) has acquired WirtschaftsHaus AG, German senior housing developer, for an undisclosed amount. The deal will enable the company to establish a market-leading position in delivering accommodation which addresses the care needs of the country’s ageing population. It follows the purchase in 2016 of WI-IMMOGroup by another ASG fund. The two companies, combined, deliver 1,500 units in retirement homes or assisted living facilities a year and their pipeline is worth an estimated €1.2bn, effectively making ASG Germany’s biggest developer of housing for the elderly.
Saul Goldstein, ASG’s Founder and Managing Partner, said: “Germany needs to accommodate 300,000 more of its senior citizens by 2030 and we identified this as a huge opportunity for establishing a specialist developer of scale. Purchasing the project development activities of WirtschaftsHaus is another major step forward in this strategy and highlights how we have been favouring the unconventional corporate route to invest in attractive real estate themes in Germany on behalf of our investors.”
The acquisition of the project development activities of WirtschaftsHaus is the 17th investment by ASG’s Fund V, which has committed about 85% of the €489m it raised from investors by its final close in December 2017. The fund’s investments are split between Germany and Spain, where it has invested directly into real estate – mainly in condominium projects in high-demand locations that are managed by ASG’s Spanish residential development platform, ASG Homes.
Saul Goldstein concluded: “Our local teams are seeing a significant number of highly attractive investment opportunities in Germany and Spain, which is why they have had no difficulty in deploying Fund V’s capital so quickly. They are well-placed to source deals and transact swiftly, managing assets to maximise their operational performance to deliver healthy returns for our funds’ investors.”
