PRICOA Property Private Equity (PPPE), the European real estate private equity arm of Prudential Real Estate Investors, has reached an agreement with Sunrise Assisted Living to form a joint venture to develop residential communities for the elderly in Germany and the United Kingdom.
PPPE will take an 80 per cent stake in the project with the remaining 20 per cent controlled by US senior care provider Sunrise Assisted Living. The residential developments will be funded through joint contributions approximately $120m in addition to funding from third-party lenders.
Jonathan Short, chief executive of PPPE, said the venture will cater for the rapidly growing market for residential senior care developments throughout Europe. “We are looking to develop around 45 to 50 assisted living properties in major metropolitan areas in the UK and Germany over the next five to seven years.” Under the agreement Sunrise will manage the properties developed.
Real estate investor PPPE is looking to increase its presence in the UK and Germany, where the number of seniors as a percentage of the overall population exceeds that of the United States and is growing at a faster rate.
In February this year, PPPE paid E20m for a 70 per cent stake in DeWag WohnAnlage, a Stuttgart-based residential real estate investment and consulting group. DeWag has a portfolio of approximately 200 housing units in eight different locations across Germany. Dewag will use the funding from Pricoa to acquire additional properties from industrial corporations and institutional investors.