SPA Living+ Europe closes first transaction
The SPA Living+ Europe investment group of Swiss Prime Investment Foundation has acquired a portfolio of retirement and nursing homes in Germany. It is the first transaction of the product launched at the end of 2020.
The properties acquired by SPA Living+ Europe are retirement and nursing homes in Chemnitz (Saxony), Cottbus (Brandenburg), Eberswalde (Brandenburg), Freudenstadt (Baden-Württemberg) and Lichtenberg (Berlin). According to the Swiss Prime Investment Foundation (SPA), the market value of the portfolio amounts to 43.6 million euros, which is the equivalent of about CHF 47.7 million. For investors, this results in a target net rental income yield of 4.97%, the SPA says. After taking into account the transaction costs, an unrealized capital gain is recorded.
The five properties comprise a total of 254 assisted living apartments and 204 nursing beds. They are leased on a long-term basis to two operators with strong credit ratings, and at the same time there is a high rental potential, the SPA added. Including guarantees, the WAULT (remaining term of fixed leases) is over 24 years. The transaction was handled by Capital Bay Group, which acts as the investment and asset manager of the investment group.
SPA manages two investment groups for the investment product: SPA Living+ Europe unhedged and SPA Living+ Europe hedged. Both groups work with capital commitments, so subscriptions are possible independently of current issues. (ah)
