Stuttgart, 09th of December 2021 – AIF Capital Group, specialist for regulated alternative investment funds, expands its care fund and acquires a care facility in Oberrot near Stuttgart as part of a forward deal.
Already since 2017, AIF Capital Group has been developing the new care facility in the municipality of Oberrot located in the Rottal valley, directly next to the existing facility of the DOREA family. The building permit was granted in April 2020, and all residents are expected to move out of the old building into the new building in the fall of 2022. The new nursing home according to KfW 55 standard has almost 6,300 m² GFA and offers 100 modern single rooms. AIF Capital Group is investing around 20 million euros in the new building.
“Due to the new LandesHeimBauVO, a fundamental modernization of the existing nursing facility became necessary. However, we opted for a new building in order to secure the quality of the facility in the long term,” explains Daniel Wolf, managing director of AIF Management. “This also gave us the opportunity to directly involve the operator DOREA in the planning.” DOREA currently manages 75 healthcare facilities in Germany and is one of the top-rated operators in the country. The Oberrot facility is the third joint project between AIF Capital Group and DOREA. The two companies extended the lease to 25 years.
Ten of the 100 rooms are located in a specially protected area with a garden, which will be specially designed to meet the needs of people suffering from dementia. In addition to the residents’ rooms, the new building has 17 service rooms and 53 functional rooms. A photovoltaic system will be installed on the roof for the operator’s own use. The old existing facility will be completely demolished after the move. In its place, AIF Capital plans to construct a building complex for assisted living.
Interest in nursing care real estate increases
The Oberrot purchase brings the number of nursing homes in the “AIF Fürsorge I” fund to five properties. The open-ended special AIF with a target fund volume of 300 million euros already has capital commitments of more than 150 million euros, and further subscription requests have been received. “Investor interest in care facilities is increasing,” says Dr. Sven Eggers, CEO of AIF Partner KVG. “The population is getting older and more nursing homes are urgently needed. This gives investors the chance for a long-term, socially effective and at the same time secure investment.” According to the Central Real Estate Committee (ZIA), Germany needs 293,000 new inpatient care places by 20301.
1 Study on the PFLEGEMARKT 2030: https://www.zia-deutschland.de/wp-content/uploads/2021/03/Pflegestudie_IREBS.pdf
About AIF Capital Group
AIF Capital Group is a real estate manager and specialist in regulated alternative investment funds for institutional investors. As investor, trustee, KVG with BaFin license and asset manager, the company offers investors high-yield and sustainable real estate investments. The company is a member of the ECORE and ICG sustainability initiatives and is a signatory of the UN PRI. The group of companies was founded in 2006 in the private bank Ellwanger & Geiger and was fully acquired in 2017 as part of a management buyout. The company pursues the goal of making classic real estate asset management innovative and dynamic, while offering a high quality of service. The group employs 43 people, has equity of 5.6 million euros and currently manages assets (AUM) worth around € 1 Billion.