Threeestones Capital has secured a €53.5m facility from Societe Generale to fund the acquisition of six nursing homes in Germany and to refinance two nursing homes in Spain for its TSC FUND – EUROCARE IV investment vehicle. The facility was arranged by Westfort Advisors and is the first cross-border CRE debt financings in the nursing home sector of 2022.

The transaction increases the fund’s portfolio by 800 beds, bringing its current total to over 6,500 beds and nearing €2b AUM The properties are all leased on long term leases to leading care operators.

Threestones Capital, Beka Pipia, Portfolio Manager said

“The specificities of healthcare real estate have guaranteed significant resilience to the asset class during these unusual macroeconomic times, characterized by high inflation, slowing growth and a commodity shortage. We expect the demand by large institutions for the segment to continue to grow as they get increasingly allured by the inflation-indexed cashflows and affirming demographic trends.”

From Societe Generale, Fernando de Galainena, Head of Real Estate Structured Finance Spain stated:

“We are delighted to have accompanied Threestones Capital in this financing. This is the first transaction of Societe Generale with Threestones Capital and our idea it to continue supporting them with their healthcare strategy around Europe.”

Deepak Drubhra, Co-Founder of Westfort Advisors said:

“Our team is delighted to work on this transaction with Threestones to deliver a cross-border financing solution. We are confident that this structure will enable them to increase their portfolio across Germany and Spain. We are also grateful to the Societe Generale team for their support and pragmatism throughout the process, and execution of a market clearing financing package.”

Threestones Capital were advised by K&L Gates (Legal, Germany), Pavia-Ansaldo (Legal, Spain), Auxilium Financial Risk Management (Hedging) and Westfort Advisors (Debt Advisory).

Societe Generale were advised by Ashurts (Legal), Euro Transaction Solutions (Insurance Advisory) and Savills (Valuations).

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