Principal Real Estate has acquired the "Vitahris" health centre in Bad Neuenahr, Rhineland-Palatinate. The transaction marks the first purchase for the Principal Care Invest II fund. The vendor is the municipal utility company Stadt + Projektentwicklung. The parties have agreed not to disclose the purchase price.
The five-storey property, situated on Rathausstrasse/Bergstrasse/Hauptstrasse, was built in 2007 and totals c.6,500m². Doctors' surgeries and offices on the upper four floors make up c.5,200m²s, with 1,300m² of retail accommodation on the ground floor. Most of the tenants are medical practices, while others include a pharmacy and the Kamps bakery chain. The property is currently 95% let, with a weighted average unexpired lease term (WALT) of more than five years.
Principal Care Invest II is an open-ended real estate special AIF with health care properties, targeted on institutional investors. The objective is to establish and manage a balanced and regionally diversified portfolio of health care properties, with long-term value stability. The investment focus is on care homes, outpatient facilities, sheltered housing and includes rehabilitation clinics with psychiatry, gerontology and oncology functions, as well as medical care centres in Germany. The fund has an investment volume of around €300m, of which up to €150m is equity. It aims to achieve a distribution yield of up to 6% on a ten-year average.
