Kungsleden acquires two retirement homes in Germany
Swedish listed property company Kungsleden AB (publ) is acquiring two retirement home properties in Bocholt, Germany, about 40 miles north of Dusseldorf, for nearly SEK 140 m (EUR 14.7 m) including transaction costs.
These properties, built in 2002 and 2004 have lettable floor-space of just over 6,300 sq.m. and accommodation for 150 residents. The rental value is nearly SEK 10 m (EUR 1.0 m), while the estimated property yield is 6.7%.
The retirement homes are operated by Azurit-Rohr GmbH, which has a nationwide retirement home operation in Germany. The rental agreements with Azurit-Rohr are for 20 and 22-year terms for the two properties.
“This acquisition is another step on the way for our retirement homes initiative in Germany,” commented Kungsleden’s Chief Executive Thomas Erséus, “the properties satisfy our investment criteria well, and the long-term agreements create high and stable returns for the long term.”
Kungsleden is scheduled to take possession on 19 October.