TSC Gefcare Real Estate Fund-old - Threestones Capital

Gefcare Real Estate Fund

Investment Objective

Acquire yield generating senior housing properties in Germany, rented out under long term contracts to top tier nursing home operators.
Expected portfolio: 15-20 properties with 1,600-2,000 beds.

Investment Strategy

A unique investment proposition combining current cash flow and capital appreciation in a growing and uncorrelated sector.
Build up a critical mass portfolio of quality senior housing assets sufficiently large to attract institutional investors willing to pay a premium to access sizeable portfolios in this emerging and still fragmented asset class.

Nursing Homes Market: anticyclical, growing and recession-proof

Sector mainly driven by natural demographic demand and resilient to the economy and markets
Regulated and government supported by the leading European country
German senior housing market expanded twice faster than GDP in the last 10 years and it is expected to grow at 5% p.a. until 2050
Long term leases (25 years) indexed to CPI (inflation protection)
Attractive acquisition yields (7-8%p.a.) compared to other developed markets (150-200 bps)
Price per sqm (EUR 1,500 per sqm) lower than replacement cost

Current portfolio

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Threestones Capital