Deutsche Wohnen SE sells care portfolio for over €300 million

Deutsche Wohnen SE has finalized the sale of its Katharinenhof Group care portfolio, comprising 26 care properties, for a purchase price exceeding €300 million. The transaction was facilitated by Cushman & Wakefield, a global leader in property consultancy. The buyer is a fund managed by Civitas Investment Management (CIM), with TSC Real Estate advising Civitas on the acquisition.

The portfolio features over 3,000 beds across its care homes, which are primarily fully inpatient facilities with some assisted living units. This sale marks a significant move in the healthcare property market, reflecting growing investor interest in this asset class.

Cushman & Wakefield played a crucial role, acting as the commercial real estate advisor to Deutsche Wohnen SE. The firm also handled the technical due diligence required for the sale.

Commenting on the transaction, Jan-Bastian Knod, Head of Residential Investment Germany & Head of Healthcare Advisory at Cushman & Wakefield, stated, “The healthcare property asset class is returning to the spotlight for institutional investors. Following a period of high inflation, the operating results of care home operators have stabilized, making them more profitable. The long-term demand, stable market, and attractive returns are driving both national and international investors to explore opportunities in nursing, rehab, and medical care properties.”

Looking ahead, Cushman & Wakefield expects an increase in transaction volume within the healthcare real estate market throughout 2024, continuing the upward trend from 2023.

This sale highlights the sector’s strong potential as investors seek stable, long-term opportunities in a rapidly evolving property cycle.