Belgian diversified real estate investment trust Cofinimmo SA agreed to buy 17 German nursing and care homes worth a combined €172 million from a joint venture led by European private equity firm Revcap.

The acquisition will cover a 94.9% stake in 14 companies that own the assets. The deal represents an initial gross rental yield of roughly 5.5%.

The portfolio, which includes 16 operational properties and one under construction, comprises 1,477 beds across 75,000 square meters. The assets are let to operator Stella Vitalis under fixed 30-year leases.

Cofinimmo funded the acquisition through its existing credit lines.