In connection with a mandate granted by a Dutch family office, the Cologne-based multi-family office for real estate assets DERECO sold a care home and a neighbouring hotel in Velbert-Langenberg near Dusseldorf to a healthcare fund operated by Patrizia AG. The transaction was an off-market deal. DERECO had acquired both properties as turnkey projects from the Hochtief construction group in 2010. Up until the recent sale, they had been held by DERECO’s asset management.

“Our current investment strategy is that we don’t restrict ourselves to optimising our portfolio via additional purchases but also realign it through dedicated disposals. Our entire care home portfolio has now been sold. At the bottom line, the family office we serve earned considerable returns while we held these assets on their behalf,” says Tassu M. Degen, DERECO’s Managing Director.

The buildings are located right in the historic heart of Velbert-Langenberg. The care home covers just under 3,900 sqm of useful space for 78 residents in long-term care, and a short-term care wing. The hotel features 22 double and nine single rooms plus 29 underground parking spaces. Both properties have been leased to the Carpe Diem care home operators.

DERECO obtained legal advice from the Heuking Kühn Lüer Wojtek law firm. It was agreed not to disclose the selling price for the properties in question.

For additional purchases, DERECO is searching the German market for existing properties and plots with a potential to increase in value. Relevant market segments include offices, housing, retail and hotels. In addition, DERECO is looking for developable land for new projects. Investment sums range between a minimum of EUR 20m for individual properties and up to EUR 500m for large neighbourhood projects. Besides top locations across the country, prospering cities and metropolitan areas with a population of at least 250,000 will be considered.