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
