A fund managed by ActivumSG Capital Management, the
value-add firm focused on European real estate investments, has
acquired Germany’s largest and fastest growing specialist
developer of senior housing in a strategy to capture the
opportunities presented by the country’s ageing population.
ActivumSG Fund III has purchased a 94 percent interest in
WIIMMOGroup, a private company based in Hildesheim, near Hanover,
that generates annual sales of around €90 million.
European Union statistics show that 21percent of
Germany’s population is currently aged 65 or more and this
proportion will grow to 28.1percent by 2030. Care providers will
need to build additional space to accommodate 300,000 more of
its elderly citizens by 2030, according to German government
projections.
Saul Goldstein, Founder and Managing Partner of ActivumSG,
said: “Germany’s ageing population presents a compelling
investment opportunity that we’re grabbing for our investors
through WI-IMMOGroup’s market-leading platform. There’s a lot of
investor interest in senior housing in Germany and the
competition is pushing up asset prices, which is why we have
gone down the developer route. It’s a strategy the fund has also
pursued in Germany’s mainstream housing market, through its
investments in formart and GRK.”
Founded in 2008, WI-IMMOGroup sells units in care homes and
retirement complexes that it has either developed itself or on
behalf of operators and owners. The company currently has a
pipeline of 22 projects.Frank Winkel, Founder and CEO of
WI-IMMOGroup, said: “With the support of our new shareholder we
are looking to broaden our footprint right across Germany and to
step up the number of care-home units that we deliver to around
1,000 a year, from about 650 currently.”
The investment in WI-IMMOGroup means that ActivumSG Fund III has
committed nearly all of the €380 million of equity that it
raised from investors by its final close in March 2014. Aside
from acquiring German residential developers formart and GRK,
the fund’s other investments include: real estate loans,
residential developments, office and retail properties. All of
the assets are located in either Germany or Spain.
Advising the fund on the WI-IMMOGroup purchase were Noerr LLP
and Deloitte as well as leading industry consultant Terranus.
www.activumsg.com