Stuttgart, 20. July 2021 – AIF Capital Group invests in two modern care facilities and thus expands its newly launched senior care and living fund. Currently, the investment commitments of various investors for the open-ended special AIF already amount to 154 million euros.
AIF Capital acquired the two care facilities near Stuttgart in 2018 and has been developing them extensively since then. Based on the new state home construction regulation, the group completely realigned the facilities: Thus, AIF Capital carried out extensive renovations and modernizations during ongoing operations and invested in additional new buildings. In addition, AIF Capital implemented a new operator concept and handed over the operation of both properties in 2019 to the DOREA group, with which a “double net” lease agreement was concluded for 25 years. In Germany, DOREA is one of the largest private operators in the care sector.
“Thanks to our extensive experience in the social real estate asset class, we know exactly where to tackle operational and real estate issues in order to successfully set up an asset for the long term,” says Daniel Wolf, managing director of AIF Management. “Now the two facilities are run by one of the best operators in Germany and are in impeccable condition thanks to our modernization measures.”
Wolf is particularly positive about the balanced mix of inpatient beds, assisted living units and day care spots. This enables the individual and growing needs of the residents to be met, he says. Together, the two facilities offer 207 inpatient care beds, 16 assisted living units and six day care places. Last but not least, AIF Capital’s investment will secure the long-term operation of the properties and thus jobs and necessary care places in the region.
New fund has a target volume of 300 million euros
The senior care and living fund, which was launched as recently as 2021, is an open-ended special AIF with a target fund volume of 300 million euros. Currently, the capital commitments of various investors already amount to 154 million euros. The targeted distribution yield is around 4.75 percent per year.
Dr. Sven Eggers, chairman of the board of AIF Partner KVG, explains about the senior care and living fund: “If you look at the current figures of the Federal Statistical Office, we need 550,000 new care places in Germany in the next ten years. So there is great investment potential in the nursing care real estate asset class, which we want to address with our fund.” Already today, nursing care facilities show a very high occupancy rate, the two new acquisitions of AIF Capital even almost 100 percent. According to Dr. Eggers, investors can thus rely on a long-term and stable return. “Due to these very positive prospects for investors, we are not surprised that the fund was even oversubscribed by our investors,” Dr. Eggers confirms the high interest in the fund.
