Le er from the Management - AviaRent Capital ...
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June | 2019
Letter from the Management
As you well know, AviaRent Capital Management S.à r.l. is a specialised real estate investor
and asset manager with a strategic focus on nursing care facilities, micro-apartments and
children’s day care centres. Our strategy has stood the test of time and this September, we
will be celebrating our tenth anniversary. Together with our French partner, Primonial, we have
a joint fund volume of more than €4.5 billion of real estate in the nursing care and education
segments, and we are committed to continuing and building on our proven growth strategy.
And now, thanks to our new letter from the Management, we are delighted to be able
to provide you with regular insights into our company. In addition to a brief review of our
transactions, our newsletter explores key market trends and keeps you up-to-date on all the
exciting developments at AviaRent. We’ve recently strengthened our Management Board
with the addition of Hannes Ressel, while Mathias Giebken, who has headed the company
since it was founded, extended his term as Chairman of the Executive Board for several years
on 1 May.
We hope you enjoy reading our letter from the Management!
Warmest regards,
Your AviaRent Executive Board
– Mathias Giebken – – Yenna Haack – – Ralf Otzen – – Hannes Ressel –
(CEO) (CIO) (CFO) (CSO)
NEWS FROM Effective 1 June 2019, Hannes Ressel became the fourth member of Avia-
THE EXECUTIVE Rent’s Board of Directors. As CSO, he is responsible for Sales, Investor Re-
BOARD lations and Fund Structuring. Our CEO, Mathias Giebken, is now responsible
for Reporting, Investor Relations, Legal & Compliance, Strategy and Human
Resources; Ralf Otzen, CFO, oversees AviaRent’s Controlling, Operations,
Financial, Audit, Tax and IT and Yenna Haack, CIO, is in charge of Transaction
Management, PR & Marketing, Asset Management, Property Management
and Loans.
Hannes Ressel has more than ten years of experience in working with major
clients and institutional investors. He joined AviaRent in early 2016 and as-
sumed overall responsibility for existing and new investors, an area for which
he was most recently Head of Sales. In his previous post, he was responsible
for the entire investment portfolio and management of a family office. He
started his career with DZ BANK AG, a major German cooperative bank,
where he spent almost ten years in bank’s FX sales and corporate/structured
finance departments.
We are pleased to add such an experienced new member to the AviaRent
Executive Board and look forward to benefiting from Hannes Ressel’s exten-
sive real estate industry expertise and deep understanding of our company’s
internal structures.
LATEST In January, AviaRent invested €23.45 million in a care and therapy centre in
ACQUISITIONS Lower Saxony for our open-ended special AIF, “Care-Vision III”.
At the beginning of February, AviaRent also acquired a nursing home in East
Frisia for “CareVision III” for around €10 million.
In April, we invested around €12 million in a nursing home in North
Rhine-Westphalia.
In May, we added two more facilities to “CareVision III”: a nursing home in
Dresden for around €15 million and a senior citizens’ home in Schleswig-
Holstein for almost €12 million.
LATEST Demographic change is intensifying demand for care places across Germany.
MARKET TRENDS According to figures from the Federal Statistical Office, around 3.4 million German
citizens currently require nursing care; by 2035, this figure will increase to around
3.8 million. According to a recent study from Wüest & Partner and Ottenströer, the
inpatient nursing care sector alone will need around 230,000 extra places in the
same period. The nursing care real estate market is therefore set to remain a growth
market for many years to come.
In 2018, CBRE calculated a total investment volume of around €2.1 billion, an
increase of 149% compared to the previous year. Large portfolio deals accounted for
around 75% of the total transaction volume.
At the end of 2018, the prime yield in the care property sector was four percentage
points above the risk-free reference interest rate of 4.75% and significantly higher
than the prime yield for hotel real estate (4.0%). Hotels are the most compara-
ble asset class, especially given their similarity as management-intensive operator
properties. Based on this direct comparison, it is clear that care properties remain an
exceptionally attractive asset class.
NEW FUNDS CareVision IV
In May 2019, we launched a new fund for institutional investors, with the
fund’s placement starting in June. “CareVision IV” is targeting €500 mil-
lion of investments in social real estate infrastructure via a SICAV-FIS spe-
cial fund structure. In addition to traditional and specialised nursing homes
and assisted living facilities, the fund’s key investment focus is on the rapidly
expanding Assisted Living Plus segment. The Assisted Living Plus model is
based on a holistic approach to serviced housing for senior citizens and in-
volves the development and integration of entire neighbourhoods. In order to
expand our investment in this area, we are including investments in project
developments in the “CareVision IV” portfolio, alongside the acquisition of
existing care properties.
For our new fund, we are partnering with the Convivo Group, one of Germa-
ny’s leading project developers and operators of care and retirement proper-
ties. The company’s CONVIVO PARKS concept combines serviced homes
and shared flats for seniors with children’s day care facilities and a housing
guarantee and cost cap for residents. Together, we have already secured a
project development pipeline comprising twelve properties.
As with all CareVision funds, our strategic focus is on investing in core pro-
perties with stable, sustainable cash flows and long-term leases in Germany.
In addition, the “CareVision IV” fund will also invest in the revitalisation and
expansion of existing care facilities. This will generate additional income for
the fund.
The fund’s strategy involves an investment horizon of ten years, with exten-
sion options for an additional two years. The fund is targeting regular distri-
butions of 4.75% p.a.
SAVE THE DATE If you would like to meet us in person, you should definitely join us at the
Altenheim Expo in Berlin on 26 June. Yenna Haack, CEO of AviaRent
Invest AG, will be speaking on investment strategies for new markets in
Room C of the Estrel Hotel at 12:45 p.m.
You are warmly invited!
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