Aedifica makes first move in Spain

European healthcare REIT Aedifica has partnered with Spanish care home operator Neurocare Home to develop a portfolio of around 1,000 elderly care units in Spain for roughly €75 million.

Through the partnership, Aedifica adds an eighth country to its portfolio. It follows Aedifica’s expansion in the UK (2019), Sweden (2020), and Ireland (2021).

Aedifica will invest in a series of high-quality care home projects to be developed and operated by Neurocare Home. The homes will facilitate single rooms with ensuite bathrooms and will offer residents the opportunity to live in small-scale communities. Green open-air patios will be included on each floor.

The group says that the new homes will be let based on new irrevocable 30-year triple net leases that are fully indexed to the consumer price index (CPI). Initial rental yields are expected to amount to roughly 5.5%.

Neurocare Home, which was founded in 2020, currently operates around 420 beds in 3 care homes across Spain.

Up to 5 development projects are expected to be launched within 2022 in the regions of Madrid, Castile-León, and Andalusia. Meanwhile, Aedifica has already acquired a first plot of land in Castile-León.

Stefaan Gielens, Aedifica’s chief executive commented: “ Spain provides an attractive investment opportunity for Aedifica, as the care market is still relatively fragmented and the aging population and a lack of adequate senior housing will lead to increasing demand for high quality healthcare real estate.”

Diego Ortega, executive director of Neurocare Home, added: “Our alliance with Aedifica will allow us to grow and generate a large number of jobs in the coming years, developing innovative care properties that are fully adapted to the needs of the elderly, which differentiates Neurocare Home not only for its excellence in care and quality of service but also for its industry-leading care homes.”

Date published: December 20, 2021

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