Old age homes are becoming more and more of an issue now that the average life expectancy of German citizens is rising and the age pyramid has reversed. Today, about 21 percent of the German population is over the age of 65 and forecasts predict that it will reach almost 30 percent by 2030. Therefore, age-appropriate housing will be in high demand.
HAMBURG TEAM Investment Management is following this trend with two recently announced investments. The company is part of the HAMBURG TEAM Group, a Hamburg-based project developer that has been in existence since 1997. The Investment Management subsidiary deals with real estate investments and real estate management for fund solutions – in particular, for institutional, professional and semi-professional investors. In this sense, HAMBURG TEAM Investment Management is an asset manager focusing on real estate – which is also part of our list of Germany’s biggest real estate investors. At the same time, the subsidiary also functions as a capital accumulation point for project developments of the HAMBURG TEAM Group. The firm is part of our list of Germany’s largest property developers.
“Wohnen 70+” – HAMBURG TEAM fund for elderly-focussed residential models
The company’s products include the “HAMBURG TEAM Wohnen 70+” fund. From a legal point of view, this is an open-ended special AIF (AIF = Alternative Investment Fund) – a fund form focussed on real estate investments, which is similar in design to an open-ended public real estate fund, but is aimed at professional and semi-professional investors. In economic terms, “Wohnen 70+” represents a club deal: Real estate investment with a manageable number of investors. The fund is still under construction and the target fund volume is around 350 million euros.
Investments will be made throughout Germany in residential models with outpatient care for the 70+ generation; this includes, for example, assisted living, various inpatient and outpatient mixed forms and, to a certain extent, inpatient nursing homes. The aim is to meet the needs of older generations for self-sufficient living, while also taking into account bottlenecks caused by the shortage of skilled workers. The two recent acquisitions of HAMBURG TEAM Investment Management for “Wohnen 70+” address this issue perfectly.
Two senior citizens’ residential homes in Bremen-Vegesack and in Schwanewede
The purchase of both homes totalled EUR 36 million. They are “forward deals”, which means they are ongoing project developments where the transaction was completed before the completion of the project. The seller is the project developer M-Projekt from Bremen. One is a residential complex with 7,100 sqm rental space in the Bremen district of Vegesack; the other is a property with around 3,000 sqm rental space northwest of Bremen in Schwanewede. Despite the two projects being about eight kilometres apart as the crow flies, they have a connection. When the project ends, the residential complexes will be managed by the Bremen-based Convivo Group – a company that acts as the operator and offers services in the field of housing for the elderly.
The properties are designed as senior citizens’ residential parks (Convivo Parks). This concept combines independent living “within your own four walls” with the comprehensive support, service and care offerings of a senior citizens’ facility.
A facility with a total of 59 residential units is planned for the property in the Vegesack district. In addition, two shared flats with 12 places each are offered. The “Aumund” residential park will include daycare and various service offers that can be called up as required. An “in-house” restaurant/café is also planned. The senior citizens’ residential park is located on the central Meinert-Löffler-Strasse in Vegesack, has very good public transport connections, access to a nearby lake and offers quickly accessible shopping facilities for daily needs in the surrounding area.
Schwanwede, which directly borders Bremen, is already in Lower Saxony north of the Vegesack district. The concept of the Schwanewede senior citizens’ residential park is similar to that of the Aumund residential park. It is planned to have 16 residential units and two shared flats with 12 places each. The facility is located in the middle of a residential area “in the green” and will blend in seamlessly with the surrounding area, both visually and atmospherically. There are also good shopping facilities “on site”.
Both projects are scheduled for completion in the middle or end of 2021. With an attractive offer and a first-class operator with experience on projects like Convivo, there are good prospects that the investment calculation will work out. Further investments with a similar focus will follow to complete the fund.
Picture source: Should Wang
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Originally posted on April 26, 2020 @ 11:22 pm