Five Quarters Real Estate buys another nursing home
Hamburg, 26 October 2022. The Hamburg-based investment manager Five Quarters Real Estate AG (5QRE) is maintaining its high pace of investment. The agreement for the purchase of a nursing home in Halberstadt (Saxony-Anhalt) was concluded for the fund “5QRE Healthcare Infrastructure Deutschland 01”. The modern “Haus Halberstadt” has 60 beds in 50 single rooms and 5 double rooms. Opened in 2009, the care facility offers full inpatient care as well as short-term and preventive care – the focus is on the care of people suffering from dementia. The purchase price is in the high single-digit million range. “In our view, the market for healthcare real estate is considered resilient and crisis-proof. This makes it an excellently risk-adjusted and very attractive asset class compared to other sectors,” explains Georg zu Stolberg, 5QRE founder, about the current investment.
High occupancy rate over the long term
“Haus Halberstadt” is operated by an established and locally based care provider that has been active in the market for more than 20 years. The operator runs six other facilities in the region – among others the nearby assisted living property. The occupancy rate is stable in the range of 98 %. “With this investment, we can assume long-term secure rental income through a long-term contract with an established operator,” adds Peret Bergmann, 5QRE founder. In addition, the expected demographic development in the region around Halberstadt means that occupancy rates are likely to remain very high.
Above-average primary energy demand
The nursing home is in very good condition and meets the KfW60 energy standard. The rating of the building in terms of energy demand is above average. Even without additional ESG measures, the nursing home will not leave the path to achieving the Paris climate targets until 2046. Nonetheless, additional energy-value-enhancing measures are planned for the near future. These include, among others, the increased digitisation of building services. “Due to the very good condition of the building, the generally good energy balance and the low primary energy demand, ‘Haus Halberstadt’ is an excellent fit for our Article 8 Fund. In our investments, we don’t just focus on sound key performance figures of the properties, but also on first-class ESG parameters in terms of sustainability,” explains Erik Beets, 5QRE founder. For this investment, 5QRE also collaborated with the healthcare real estate specialists at TSC Real Estate in Berlin.
Continue to invest despite changing market conditions
Despite the increasingly difficult market environment and changing financing conditions, 5QRE intends to continue working at a high pace to acquire additional properties for the “5QRE Healthcare Infrastructure Deutschland 01″. ” Our goal remains to deploy the equity available in the market. We are therefore continuing our targeted search for high quality properties in order to supplement our solid and well-balanced portfolio,” Peret Bergmann announces regarding the future strategy. From now on, more investments in project developments will also be considered.
ABOUT FIVE QUARTERS REAL ESTATE | 5QRE
Five Quarters Real Estate AG | 5QRE is a regulated real estate company (AIFM) for institutional investors based in Hamburg. 5QRE offers access to transactions in the sectors healthcare, residential, work, retail, as well as customised and individualised concepts throughout Europe. For maximum transparency and regulatory certainty vis-à-vis investors and the supervisory authorities, 5QRE makes extensive use of digital analysis, forecasting and reporting tools. For 5QRE, ESG is not a regulatory approach, but an attitude based on social responsibility.