TA Europe recently extended its impressive track record in providing technical expertise to funds investing in the care home or assisted living residential sector, through providing Technical Due Diligence advice and Project Monitoring services on behalf of Principal Real Estate Spezialfondsgesellschaft mbH (Prin RE), on their acquisition of a residential park in Springe, near Hanover in northern Germany.
The property under review comprised 23 new-build residential units, of which seven were within bungalows and the remaining 16 units formed part of a residential apartment block, all of which were purpose-built for assisted living for senior citizens and which are in the vicinity of a 96-unit care home facility, which will service the apartments and requirements of the residents in these additional units, with the care home property already owned by our client, Prin RE.
Prin RE acts as fund manager for the Care Invest I fund, which increased its portfolio to 12 care properties, with a total of 854 beds and 121 serviced apartments, following this acquisition.
The TA Europe technical team worked closely with the developer during both the initial technical appraisal and ongoing monitoring phases, including handover and completion stage, to monitor progress and quality of the design and construction works, as well as ensure that all potential technical risk issues were being reported and duly assessed and addressed, so that these could be avoided or considered as part of the purchase process.
From regular and increasing demand for technical expertise and services from a number of investor clients in the residential care home sector, we have witnessed how the demand for senior assisted living and care home facilities is growing in Germany, as it is across many European countries where we are also active and providing technical advice to investors. It is widely recognized that as the ‘baby boomer’ generation reaches retirement, the need for homes specific to the needs of the elderly, with purpose-built and fully barrier-free facilities, along with in-house or nearby services and support on call, is ever increasing.
Our other relevant experience in this growing sector includes advising international funds with advice on both single site acquisitions of operational care homes, along with desktop technical reviews of forward deals of portfolios of proposed care home facilities, including both new build developments and conversions of historic properties such as former central post office or school buildings in the middle of a town or city. In this respect, it has been interesting to note that the care home operator specialists have noted a demand from their clients, senior residents and their families, for apartments in city centre locations, where there is more local activity for the residents and better public transport options, as opposed to care home locations in quieter locations in the countryside.
We would be glad to provide you with further details of our technical expertise and market-leading experience in technical appraisals and building pathology advice to investors and owners of commercial property across Europe.