Healthcare-focused real estate investment trust Aedifica SA has extended its partnership with developer Specht Gruppe through a roughly €44 million deal for the construction of about 220 senior living apartments and homes on eight sites in Germany.
Aedifica plans to acquire the sites by taking over Specht Gruppe-owned companies over the next few months, with construction on the new buildings to be carried out by the developer's Residenz Baugesellschaft unit. The sites are set to be leased to Residenz Management GmbH, also a subsidiary of Specht Gruppe.
The first buildings under the new project are expected to be completed in the first half of 2019, and upon completion, the 220 units will have a gross rental yield of approximately 5.0%, according to a release.
The new agreement boosts the two joint venture's development portfolio to a total of 1,800 units, reflecting a gross yield of roughly 5.5 %, with Aedifica's total investment amounting to approximately €245 million.
The REIT will use its credit facilities to finance the deal.
