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Press Releases 2019
Principal acquires first property for Principal Care Invest II Fund
29 January 2019 – Principal Real Estate Spezialfondsgesellschaft mbH (Principal) has acquired the first property for the Principal Care Invest II fund; the “Vitahris” health centre in Bad Neuenahr, Rhineland-Palatinate. The vendor is the municipal utility company Stadt + Projektentwicklung GmbH. The parties have agreed not to disclose the purchase price.
The five-storey property, situated on Rathausstrasse/Bergstrasse/Hauptstrasse, was built in 2007. It has a total lettable area of around 6,500 square metres. Doctors’ surgeries and offices on the upper four floors make up ca. 5,200 square metres, with 1,300 square metres of retail accommodation on the ground floor. Most of the tenants are medical practices, while others include a pharmacy and the Kamps bakery chain. The property is currently 95% let, with a weighted average unexpired lease term (WALT) of more than five years.
BFS Service advised on the transaction on behalf of Principal. DLA Piper LLP provided legal advice and ChandlerKBS was responsible for technical issues.
Principal Care Invest II is an open-ended real estate special AIF with health care properties, targeted on institutional investors. The objective is to establish and manage a balanced and regionally diversified portfolio of health care properties, with long-term value stability. The investment focus is on care homes, outpatient facilities, sheltered housing and includes rehabilitation clinics with psychiatry, gerontology and oncology functions, as well as medical care centres in Germany.
The fund has an investment volume of around EUR 300 million, of which up to EUR 150 million is equity. It aims to achieve a distribution yield of up to 6% on a ten-year average.
The individual lot sizes the fund is targeting include properties between EUR 7 and 20 million for care properties and sheltered housing, and between EUR 10 and 30 million for rehabilitation clinics and medical care centres. The majority, between 60 and 75%, is to be invested in care homes and sheltered housing. The fund, which was launched at the beginning of 2018, has a planned investment period of three years.
Principal is part of the US Principal Real Estate Investors, the real estate investment group within Principal Global Investors, based in Des Moines, Iowa. Prin RE, which has almost USD 75 bn of assets under management, ranks among the top 10 real estate managers worldwide.
Principal contact for further information:
T +49 69 50 50 66 9 30
INTERNOS contact for further information:
T +49 30 577 01 42 43
Principal Real Estate Europe
Principal Real Estate Europe is part of Principal Financial Group’s dedicated real estate business, Principal Real Estate Investors, which manages or sub-advises $74.5 billion1 in real estate assets globally.
The group’s real estate capabilities cover all four quadrants encompassing public and private, equity and debt investment solutions.
In Europe, Principal Real Estate Europe operates from offices in London, Frankfurt, Amsterdam, Paris, Lisbon, Luxembourg, Madrid and Milan, employing more than 100 staff who manage real estate across all asset classes in nine different countries.
Principal Real Estate Europe was formerly known as INTERNOS Global Investors, which was set up 10 years ago by Jos Short and Andrew Thornton, who continue to lead the business.
Principal Global Investors
Principal Global Investors® leads global asset management at Principal®. As a multi-boutique firm, we bring a focused perspective and offer expertise across a host of asset classes.
At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.
Principal Global Investors manages approximately $447.51 billion in assets on behalf of over 800 institutional clients located in over 80 countries as well as retirement plans and individual clients, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of September 30, 2018).
To find out more, visit us at principalglobal.com.
1As of September 30, 2018.