Background and Opportunity
- Germany’s ageing demographic profile, its state funding of healthcare provision and a fragmented nursing home market provide a favourable investment background
- Stella Vitalis’ business plan has been to aggregate a portfolio by forward committing to and to directly developing new nursing homes in areas of under supply
- The JV acquired both the properties and the operating business to provide very flexible exit optionality
- Assets to be individually financed at the property level leaving the operating business unleveraged
Transaction Progress
- Revcap and its JV partners have committed to 20 nursing homes comprising over 1,800 beds
Current Status
- Stella Vitalis’ stabilised homes are operating at over 95% occupancy
- The nursing home properties were sold in 2018 to an institutional acquirer at a level materially above underwriting
- The operating platform has been retained on an unleveraged basis
