German real estate fund manager Corpus Sireo has attracted €150 million of equity for a country-and- niche-specific fund, it has revealed.
The firm, which is already the biggest real estate investor in care homes in Germany, said it had closed Corpus Sireo Health Care II. With debt the fund would be capable of holding $300 million of assets. The firm has so far drawn down €50 million of commitments to invest in eight care homes, and contracts are due to be signed for a further two homes in the next few weeks.
Marc-Philipp Martins Kuenzel, fund manager of the vehicle, said in a statement: “The performance of these assets is virtually immune to developments elsewhere in the economy. The assets focus on demographic developments in Germany, where the percentage of elderly persons in relation to the overall population is constantly increasing. This is the reason why German care homes are a popular and reliable form of investment.”
The firm said the investment focus for the fund would be on new-build projects in Western Germany in particular.
If the fund is used to acquire existing homes, then the rental agreements would have a minimum term of 15 years, whereas the corresponding agreements for new-build homes have a minimum term of 20 years.
Each home is expected to have between 80 and 140 beds. The fund will mainly be used to invests in in-patient care homes, but it could also extend to homes offering care for dementia, care for young adults and long-term care.
These various options are to provide the vehicle with diversification in terms of locations, operators and care concepts, explained the company.
Corpus Sireo is one of the largest real estate investment managers in Germany with a property portfolio of around €16.5 billion. It employs 560 staff in 11 offices in the country.