Care Property Invest buys senior living project in Madrid

Spain’s senior living property sector continues to attract investment despite the coronavirus pandemic thanks to its strong demographic fundamentals and low coverage ratio in a country where the number of people aged 65+ is predicted to grow by as much as 67% by 2040.

Care Property Invest has announced the acquisition of ‘Emera Carabanchel’, a care centre project which includes a group of assisted living apartments in Madrid’s southwestern suburb of Carabanchel. This is CPI’s second acquisition in Spain and was advised by Cushman & Wakefield.

According to Peter Van Heukelom, CEO of Care Property Invest, «Emera Carabanchel’, like the previous acquisition ‘Emera Mostoles’, is a new construction project situated in a prime location»

The project will have a capacity of 179 care home beds in addition to 11 assisted living apartments. As per the agreement, Care Property Invest has bought the land and commissioned Aldara Construcciones (part of the Habescon Group) to carry out the development. CPI will also finance the construction works which are expected to start during the 3rd quarter of 2020 with a provisional delivery of ‘Emera Carabanchel’ scheduled for the 2nd quarter of 2022.

The total investment value for this project is estimated at approximately €14.6 million and will be operated by a subsidiary of Groupe Emera on the basis of new long-term rental agreement of the ‘triple net’ type with a minimum duration of 15 years (renewable), which will be indexed annually. According to Care Property Invest’s CEO, the fund wants to «be a strategic partner for [Groupe Emera] in the development of [CPI’s] healthcare portfolios» with the «ambition to expand these within the foreseeable future in order to further strengthen [CPI’s] position as a listed European healthcare property player.»