AG sells German healthcare portfolio to Healthcare Property Fund Europe

Tim Harrup

AG Real Estate SA, representing its parent company AG Insurance SA, and Cardif Lux Vie SA (a Luxembourg life insurance company positioned among the major players in the market) recently carried out a major transaction involving the sale to Healthcare Property Fund Europe (HPF Europe). This is a fund specialising in real estate and managed by BNP Paribas Real Estate Investment Management (REIM) Germany, and the transaction involves a healthcare portfolio made up of five sites with a total capacity of 534 beds. The properties have a total lettable area of 23,554 m² and are ideally located in the towns of Stemwede, Lehrte, Bad Elster, Bielatal and Bad Sooden. Spread over four federal states, these care homes are managed by two of the top ten operators on the German market, namely Alloheim and Dorea.

Amand-Benoit D'Hondt, Head of Funds, Alternative & Healthcare Investments & Fund Management at AG Real Estate, explains: “The healthcare market in Germany has been growing in recent years. Indeed, from 2016 to 2020 we rode on the back of this trend by making a number of acquisitions to assemble a portfolio of 24 units. As the manager of a real estate portfolio on behalf of our shareholder, we have decided that the time is now ripe to rotate our assets to bring us into line with our investment strategy”.

His colleague Matthias Gabrisch, Investment Manager at AG Real Estate, adds:“AG Real Estate and Cardif Lux Vie are pleased to have carried out this transaction in record time thanks to the efficiency and commitment of their teams. Together with Cushman & Wakefield, who acted in the scope of a buy-side mandate and on behalf of the buyer, we prepared and actioned this dossier during the summer of 2020. We took the opportunity to carry out an ‘off-market’ transaction and were able to complete it in just three short months. We would like to thank all the parties to this transaction for their speed, professionalism and efficiency”. AG Real Estate and Cardif Lux Vie were advised by Linklaters and Drees & Sommer for this transaction.