Adriano Care SOCIMI invests over €20M in Spanish care homes in Q1.

Adriano Care, a Spanish REIT vehicle managed by Azora Capital, has added two new care homes (an extra 269 beds) to its portfolio during the first quarter of 2022.

The assets, both located in the Galician region, one in La Coruña and the other in Vigo have traded at €8.7 million and €13.5M respectively.

The care home in La Coruña has 119 beds and is part of the same real estate complex where Domusvi Matogrande is located which is also property of Adriano Care. Additionally, the operation includes a subrogation of financing of 6 million euros.

In Vigo, the investment fund has bet on a new development in the historic city center which will have 150 beds and will be leased on a long-term basis to a specialized international operator. The transaction comprises an initial payment of two million euros and the remaining amount will be credited against its opening in the first trimester of 2023,as has been indicated by the REIT to BME Growth.

Early this year, Adriano Care announced that it had subscribed a loan of €125 million to continue with its investment process and strategy to purchase high quality assets of quality in the next years. The syndicated loan is guaranteed by mortgages with a pool of international and national entities with a maturity of 5 years.  

These acquisitions have been carried out on the back of the company’s announcement to sell the operating businesses (opcos) of 5 care homes it was managing in-house to French group Colisée who have begun operating the nursing homes and where Adriano Care will remain as landlord. Representing 564 beds,the portfolio had 4 income producing centers (3 are in Bilbao, 1 in Valencia) and a new construction site in Madrid.

Adriano Care currently has a portfolio of 16 assets, composed of 12 operating residences, a turnkey project and three greenfield sites where it has intentions of developing three new residences.

The REIT closed the first semester of 2021 with a profit of 1,9 million euros which is considerable better than the loss of 1,6 million euros it had in 2020. The company reached revenues of 6,2 million euros between January and June of 2021, versus the 6,3 million euros it obtained during the same period of 2020. 

According to C&W, 2021 saw €1.2 billion invested in Spanish nursing homes euros (including the €600M stake acquired by ADIA and CBREGI in Healthcare Activos). This volume represents a strong increase with respect to the €266M and €510M transacted in 2020 and 2019 respectively.