I Squared Capital to buy German elderly care residences

I Squared Capital has agreed to acquire a portfolio of elderly and specialist health care homes in South West Germany.

I Squared Capital has agreed to acquire a portfolio of elderly and specialist health care homes in South West Germany. No financial terms were disclosed. The homes are currently operated by Römergarten Residenzen GmbH and Römergarten Senioren-Residenzen Ba-Wü GmbH.

PRESS RELEASE

[Schifferstadt & London, 11 November 2020]: I Squared Capital, the global infrastructure investment manager, announces the expansion of its European social infrastructure footprint after reaching agreement to acquire a portfolio of elderly and specialist health care homes in South West Germany, currently operated by Römergarten Residenzen GmbH and Römergarten Senioren-Residenzen Ba-Wü GmbH.

Established in 2012 and based in Schifferstadt, South West Germany, Römergarten currently operates elderly care residences in the federal states of Rhineland-Palatinate, Hesse and Baden-Württemberg, providing a range of services, including nursing care, assisted living and specialised dementia care. Römergarten has a portfolio of modern nursing homes across 20 sites, with 2,000+ beds.

I Squared Capital recognises the need for new and sustained investment in elderly care facilities in Germany and across Europe, to meet the growing demand arising from an aging population in the region. Römergarten is well suited to meet this demand and provides a strong platform on which to build an elderly care business of scale in Germany through development of new facilities, best-practice care provision, and expected further consolidation within the sector.

This acquisition builds on I Squared Capital’s existing experience in European healthcare with Domidep, one of France’s largest private operator of elderly care homes, acquired in 2019.

Adil Rahmathulla, Managing Partner of I Squared Capital: “Römergarten has an excellent track record of providing high-quality care to its residents in Germany. As an established, long-term investor with a strategic ambition to build a European health care platform of scale, I Squared Capital looks forward to supporting the growth of essential health and social care providers. Our existing investment in Domidep means we are well placed to work with the experienced Römergarten management team to grow the business, while ensuring best practice and high standards of care for residents.”

About I Squared Capital:
I Squared Capital is an independent global infrastructure investment manager with $18.3 billion in assets under management, focusing on utilities, digital infrastructure, transportation, social infrastructure and energy across North America, Europe, and select high growth economies in Asia and Latin America.
The firm owns and operates a diverse portfolio of 30 companies in its targeted sectors and regions providing essential services to millions of people around the world, including digital infrastructure, energy, social infrastructure, transport and utilities.

I Squared Capital’s strategy is to focus on long-term investments which benefit from structural changes such as aging populations, telecoms usage and the shift in energy sources. The acquisition of select Römergarten care homes is the fourth European acquisition so far this year, following an agreement in October to acquire GTT Communications’ Pan- European, Transatlantic and US telecoms network infrastructure, the acquisition of Rubis Terminal and subsequently Tepsa in the sector of bulk liquid storage, as well as the acquisition of Viridis in the UK, a flexible distributed power generation asset.

About Römergarten Residenzen:
Römergarten Residenzen, based in Schifferstadt in Rhineland-Palatinate, is an operator of elderly care facilities. The homes provide stationary nursing care services, as well as assisted living and specialized dementia units at certain facilities. Founded in 2012, the company currently operates 20 residences in the federal states of Rhineland-Palatinate, Hesse and Baden-Württemberg.