Thinking in generations and preparing accordingly
Last year Deutsche Wohnen achieved one of its main objectives: the share of the Nursing and Assisted Living segment was expanded significantly and now amounts to some 12%. This expansion was largely achieved by means of acquisitions. It is not always easy to find suitable targets, because the quality has to be right.
“Three main parameters have to fit for us to spend significant time on an acquisition: the location in a metropolitan area, the architecture and condition of the property and the operator. When we also acquire a stake in a company, as well as purchasing the property, then we work with established partners who have been on the market for a long time”, says Nikodem, Director Asset Management at Deutsche Wohnen. Deutsche Wohnen has successfully pursued its strategy of investing primarily in growing cities and urban areas for a long time now. Its appreciation of quality architecture is also a core element of the Group’s brand. “But in terms of nursing care and assisted living, there are also other important parameters”, explains Nikodem. “Ideally, the properties should not be more than ten years old and should be designed and built for nursing care, because it is generally only then that they meet modern requirements of residential care for elderly people.”
In the reporting year the total number of beds in nursing homes increased to some 5,400 at 37 locations following acquisitions and equity investments. Over 80% of them are in attractive metropolitan areas. Hamburg is a focus, with 13 new facilities. A minority interest was initially acquired in PFLEGEN & WOHNEN HAMBURG GmbH to operate them. The other 24 facilities are let to well-known operators on long leases.