Residential care facility Martha

Long-term lease agreement with institutional care operator

With this proposition, you invest in a residential care facility with associated assisted-living units in the German federal state of Thuringia. The intended term is 18 months and the fixed interest rate is 8.25% per annum. As an investor, you receive a second-ranking mortgage security on the property with additional securities. The loan-to-value is a maximum of 64.1%.

The residential care facility is centrally located in Oldisleben, close to everyday amenities such as a supermarket, a church and a childcare facility. The property is let for a multi-year period to AWO (Arbeiterwohlfahrt), one of the six recognized organizations within the German Freie Wohlfahrtspflege and, with more than 300,000 employees, one of the largest and most stable care tenants in Germany. The building has 54 in-patient care units and 6 self-contained assisted-living units, each with its own terrace.

The loan is provided to the project owner for the purpose of acquiring an interest in the property company. The collateral remains the property of the property company. In addition to this property, five other care locations form part of the same company. The initiator has an extensive track record and owns several commercial and residential (care) properties both domestically and abroad.

The key characteristics of this proposition are as follows:

Fixed interest rate of 8.25% per annum;
Intended term of 18 months;
Second-ranking mortgage right;
Pledge of shares;
Loan-to-value of 64.1%;
Let on a multi-year basis (100% occupancy rate);
Reputable, nationally operating care operator;
Stable rental income;
Addresses substantial care demand;
Very good state of maintenance;
Experienced project owner;
Monthly payout;
Interest-bearing immediately from deposit;
One-off brokerage/arrangement fee of 0.45%;
Investing is possible from €2,500.

Projected return

The graph below shows the cumulative return over the course of the term, based on the fixed interest rate of 8.25% per annum. In the example below, with an investment of €5,000, a total of €618.75 in interest is paid out over the entire term of the proposition. The first and accrued interest is paid in the month following the closing of the proposition. Thereafter, you receive the fixed interest amount monthly in arrears. At the end of the intended term, you will be repaid through a refinancing or sale of the property. The presented return forecast is based on expected market conditions and project planning. There is no guarantee that these results will actually be achieved.

Cumulative return during the funding period

Investment	€5,000
Fixed interest	8,25%
Estimated duration	18 months
Total return	€618.75

Crowdrealestate valuation

Crowdrealestate has assigned this investment a risk rating of A (Defensive). Given, among other things, the second-ranking mortgage right and the multi-year lease agreement with a reputable care operator, this is a stable and solid investment. Although this investment is considered defensive, investing via crowdfunding always carries risks, including the risk that you may lose your entire investment. Please consult the Key Investment Information Sheet (KIIS) for a detailed description of the risks.

A

23 22 21

B

20 19 18

C

17 16 15

D

14 13 12

E

11 10 9

Mortgage right	Crowdrealestate's investors receive the second-ranking mortgage right on the care property.	4 points
Loan-to-value	The loan-to-value based on the appraised market value is 64.1%.	2 points
Match location with sector	The central location of the property fits well with the needs of both residents and the care provider, and contributes to stable and structural care demand.	2 points
Occupation	A full occupancy rate with a 5.5-year lease agreement with care operator AWO AJS.	3 points
Project phase	The project concerns an existing building, which entails fewer risks compared to projects in the development phase.	3 points
Track record	The initiator has an extensive track record.	3 points
Duration	The intended term is 18 months.	3 points
Additional security	Pledge of the shares, non-distribution declaration, negative pledge covenant, and Change of Control covenant.	1 points
Total		21 points

Funding structure

The loan is provided to the project owner for the purpose of acquiring an indirect interest in the property company, which comprises the property in question as well as five other care locations. The real estate remains the property of the property company and serves as collateral for this proposition.

The threshold amount of this proposition is €500,000 and the target amount has been set at €2,220,000. As an investor, you receive as collateral a second-ranking mortgage right on the property, as well as a pledge of the shares. In addition to the loan via Crowdrealestate, a bank loan of €2,717,420 has been secured for the property.

The market value of the care home with associated assisted-living units, appraised by CBRE in April 2026, is approximately €7,700,000. The surplus value, based on the total financing level and the aforementioned market value, is approximately €2,762,580. The underlying value of the mortgage registration therefore provides ample coverage.

The securities on behalf of the investors are registered in the name of Crowdrealestate's independent foundation. In addition to the mortgage right, additional securities apply, such as a share pledge, a non-distribution declaration, a negative pledge covenant, and a Change of Control covenant. The full overview of all applicable covenants and securities is set out in the parallel debt agreement.

Bank	€2,717,429	First-ranking mortgage right
Investors	€2,220,000	Second-ranking mortgage right
Surplus value	€2,762,580
Total scale	€7,700,000

Project description

The care property, also known as Haus Martha, is a care home with assisted-living units located in Oldisleben, a village that has been part of the municipality of An der Schmücke since 2019, in the German federal state of Thuringia. The municipality of An der Schmücke has approximately 6,000 inhabitants, spread across an area of approximately 95 km². The region shows the demographic characteristics typical of Thuringia: an ageing population, population decline, and an increasing share of elderly residents make care capacity in the area structurally relevant. The building opened in February 2016 as one of the most modern care homes in the region and has been in use as a fully operational care facility ever since.

The total lettable floor area is 2,450 m². Haus Martha has 50 rooms and offers a total of 54 beds, spread across 46 beds in single rooms and 8 beds in double rooms. The share of single rooms is approximately 92%. In addition, the complex has 6 assisted-living units, which are connected to the main building. The property is used as a nursing home in combination with assisted living.

Market description

The care real estate market around Oldisleben is strongly influenced by demographic developments in the federal state of Thuringia and, in particular, in the Kyffhäuserkreis district. The share of the population aged 65 and older in Thuringia stood at almost 27% in 2020 and is expected to rise to approximately 33% by 2040. Thuringia is therefore among the most aged federal states in Germany. This high share of elderly residents means that a relatively large proportion of the population belongs to the groups with an increased likelihood of requiring care.

This demographic trend translates into structural demand for in-patient elderly care, nursing home places, and forms of assisted living. The number of over-80s in Thuringia is expected to rise from approximately 170,000 to more than 225,000 between 2028 and 2040, a group with the highest likelihood of requiring care. For smaller towns such as Oldisleben, which fulfil a service function for surrounding villages within the Kyffhäuserkreis district, this means that care facilities are used not only by local residents but also by elderly people from the wider region.

Against this background, a stable market foundation for care real estate is emerging in Oldisleben. The combination of a strongly aged population, an already high care ratio in the region, and a structurally increasing share of over-80s results in a sustainable and predictable operating climate for care facilities within this segment in Thuringia.

End user

The property's rental income is approximately €456,000 per year, corresponding to approximately €15.50 per m² per month. The weighted average remaining lease term (WALT) currently stands at 5.5 years, providing stable and predictable cash flows. The operating result offers ample coverage for the interest costs of the loan. The tenant of the care property is AWO AJS (Arbeiterwohlfahrt Alten-, Jugend- und Sozialhilfe gGmbH), the Thuringian regional entity of the AWO. The AWO is one of the six recognized organizations within the German Freie Wohlfahrtspflege and operates nationally with more than 300,000 employees and approximately 2,100 locations. AWO AJS manages 38 nursing homes in Thuringia and, between 2013 and 2023, steadily expanded both its number of locations (+20%) and its workforce (+32%). Revenue and equity have risen consistently over that same period. Haus Martha's rental income is backed by structural Pflegevergütung (care-fee) reimbursements under long-term agreements with the Pflegekassen (statutory care insurance funds), which provides stable cash flows independent of the wider market.

The lease agreement is structured on a double-net basis. This means that, in addition to the rent, the costs of maintenance and insurance are also borne by the tenant, while the owner remains primarily responsible for the structural building components. This structure limits the operational costs and risks for the owner, provides a balanced allocation of responsibilities, and contributes to stable and well-predictable net cash flows over the long term.

Underlying organisation

The loan is provided to Healthcare Residential II B.V. for the purpose of acquiring an indirect interest in the property company Valartis Health Care Drei S.à r.l. This company comprises a total of six care locations, all let to AWO AJS as the main tenant.

The care portfolio in question has been financed on favourable terms via a bank loan from a major German bank. The combination of stable lease conditions and an established care operator as tenant results in predictable cash flows at the portfolio level.

The initiator has a demonstrable track record and a portfolio of commercial and residential (care) properties in Germany and the Netherlands, built up over several decades. The strategic focus is on the German market, providing stability and forming the basis for further growth within the care and real estate segment.

Supplementary files

You can open the supplementary files below

Filename
EBi - Woonzorgvoorziening Martha	Download

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