Captiva Capital Partners III has sold a portfolio of 13 healthcare centres in Leipzig, Berlin and Ingolstadt with a total area of 33,000 square metres to NorthWest International Healthcare Properties REIT.
The transaction values the portfolio at approximately EUR35 million.
Since the acquisition of the healthcare real estate portfolio in 2007, Captiva has developed the portfolio through wide-ranging asset management measures such as renovation, enlargements and modernization. The occupancy rate increased from 75 per cent to 93 per cent over the same period. Rental income has even increased by 34 per cent since the acquisition.
Stephan Fritsch, managing director at Captiva Capital Management and responsible for the business in Germany, says: “Demand for high-quality commercial and logistics properties remains high in Germany, where we made anti-cyclical investments during the years of the financial crisis. Through structured and sustainable measures to increase the value of the properties, today we manage a real estate portfolio of around 700,000 square meters of lettable space in Germany worth more than EUR700 million.”
In 2013 alone, 61 new rental contracts and contract renewals were concluded totalling approximately 83,000 square metres in Captiva’s German portfolio, thus further optimising the long term tenant mix. In addition, value added strategies for a large number of objects were successfully implemented. In 2014, 40 new rental contracts and contract renewals for around 50,000 square meters of space have been negotiated to date.
With regard to activities planned for the current year, Fritsch says: “In 2014, we expect further divestments in Germany, and we are currently in negotiations on the sale of real estate portfolios in the triple digit million euros range. Amongst others, the focus will be on the retail and logistics sector.”
Furthermore, the Captiva team plans to continue to invest in the German market through specific investment programmes. “Even though some market segments have already reached very aggressive price levels, there are still opportunities for good investments. Especially in the retail sector, we aim to continue implementing our strength in the acquisition and development of properties. In Germany, we continue to see great investment potential in smaller and medium-sized cities.”