Stella Vitalis Nursing Homes, Germany

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 forward commit to and to directly develop new nursing homes in areas of under supply
  • The JV has generally saught to control both the properties and the operating business to provide very flexible exit optionality
  • Assets are 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 was retained