Target Information

Romano Senior has successfully acquired a portfolio of 11 care homes through a Sale & Leaseback agreement with DomusVi, the largest operator of care homes in Spain. This portfolio encompasses a total surface area of 60,000 square meters and provides approximately 1,400 beds for elderly residents. The newly acquired assets are strategically located in urban areas characterized by a dense population and high demand for quality elderly care services.

The 11 care homes comprise both newly constructed properties and existing facilities situated in key cities including Seville, Gerona, Murcia, Vitoria, Bilbao, Narón, Vigo, and Madrid. DomusVi will maintain operational control over these homes under a long-term lease agreement, ensuring continuity of care and service quality for residents.

Industry Overview

The elderly care industry in Spain has been experiencing significant growth driven by demographic changes, particularly the increasing ageing population. With an estimated 20% of the population expected to be over 65 years old by 2035, demand for quality care facilities is expected to surge. This creates an urgent necessity for operators to expand and modernize their offerings, aligning with emerging standards in healthcare and sustainability.

Moreover, Spain's regulatory framework for healthcare services has been evolving to support higher care quality and improved living conditions in care homes. Investment in modernizing existing facilities and developing new ones is essential to meet these high standards and keep pace with competitors in the market.

As the largest operator in the country, DomusVi's extensive experience and expertise position it to effectively navigate these market dynamics while ensuring that the acquired care homes adhere to the latest industry standards and sustainability criteria.

With Romano Senior entering the market as a significant player, the combination of quality locations, new constructions, and a partnership with a market leader like DomusVi reflects a promising investment in the rapidly evolving elderly care sector in Spain.

Rationale Behind the Deal

The acquisition aligns with Romano Senior's strategic goal of addressing the critical shortage of high-quality elderly care assets in response to the increasing ageing population. The Sale & Leaseback structure not only provides a steady long-term revenue stream for Romano Senior but also ensures that DomusVi remains committed to enhancing and upgrading the facilities to modern standards.

This strategic commitment includes substantial investments aimed at adapting the properties to contemporary healthcare practices and sustainable living conditions, thereby increasing the attractiveness of the care homes to prospective residents and their families.

Investor Information

Romano Senior is a newly established Socimi (Real Estate Investment Trust) formed by Azora in partnership with Banca March and Indosuez Wealth Management. This collaboration leverages the collective expertise and resources of the involved parties, positioning Romano Senior as a significant investor in the real estate sector focused on elderly care.

The firm has rapidly built a diversified portfolio of care homes, currently comprising 16 assets totaling 96,000 square meters. By partnering with leading operators in the sector such as DomusVi, Romano Senior is committed to ensuring the delivery of high-quality care while achieving favorable investment outcomes.

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In the context of the current market dynamics, this acquisition seems to be a sound investment for Romano Senior. With the Spanish elderly population growing, the demand for quality care homes will continue to escalate. Investing in care homes that are primarily located in urban areas represents a strategic advantage as these sites are likely to attract a higher occupancy rate.

The partnership with DomusVi adds an additional layer of security to the investment. As the leading operator in Spain, DomusVi has proven capabilities in managing elderly care facilities effectively, ensuring that the homes will not only meet but exceed the expectations of residents.

This transaction signifies Romano Senior's commitment to sustainability and quality as they adapt their newly acquired assets to higher industry standards. The planned upgrades represent not just compliance, but an opportunity to create value and differentiate from competitors in the market.

Overall, the long-term lease agreements in combination with the growing need for quality healthcare solutions for the elderly suggest that this deal could yield positive financial returns and a solid market position for Romano Senior in the foreseeable future.

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