House builders outbid as nursing home investors pay €4.75m for 'best in class' Cork site

Aperee paid 20% over the price guide for the prime Rochestown site of over seven acres
House builders outbid as nursing home investors pay €4.75m for 'best in class' Cork site

The 7.2-acre site on Clarkes Hill, Rochestown, which has been bought by Aperee for €4.75m, will be developed as a nursing home facility.

A residential building site in Cork’s Rochestown, billed as ‘best in class’ in term of location, has been bought for €4.75m.

It has sold for 20% over the price guide, and will be developed as a nursing home facility by purchaser Aperee, part of the rapidly expanding Blackbee Healthcare Fund.

Aperee has been confirmed as the buyers of a greenfield site of 7.2 acres, with an existing 2,500sq ft 1970s dwelling on a section, on Clarkes Hill. It's an increasingly dense residential development location, with sources saying most competitive interest in it came from the increasingly dominant nursing home sector and not, as was widely expected, from house builders.

It's likely Aperee will have surplus land once the new purpose-built facility is delivered and may opt to use it for retirement/care homes.

The prime Rochestown site near Mount Oval Village went to market in October 2019 guiding at €3.85m with Peter O’Meara and James O’Donovan of Savills, with a detailed outline suggesting its suitability for a high-end house development, or on more traditional lines of 60-70 units.

The sale to Aperee is due to close out in coming months, reflecting a high purchase price of €660,000 per acre, and one of the strongest Cork development land sales in a generally flat 2020.

At least two Munster-based nursing home operators gave chase, with a Dublin agent also bidding for a Leinster operator, all indicative of the demand for prime opportunities in this lucrative ‘grey euro’ sector.

Savills' Mr O'Meara said all parties were pleased with the deal and said home builders had dropped out of the frame by the time the bidding surpassed the €3.85m guide price.

As further evidence, agents CBRE this week confirmed the sale of a portfolio of seven existing nursing homes and one new-build facility totalling 615 beds for Trinity Care Group to Spanish investors DomusVi, for an undisclosed price.

Cormac Megannety, director and head of the healthcare division in CBRE, said that transaction was "yet another indication of the continuing consolidation of the nursing and care home sector across Europe and demonstrates just how much healthcare assets are of interest to investors”.

Aperee’s acquisition of the Rochestown site is now added to its expanding portfolio of Munster homes. It is working towards a fund of €250m, largely from institutional investors, for acquisitions and new developments, typically paying €5m to €8m for existing homes of about 65 beds.

By late 2020, Aperee had acquired homes with 560 beds, employing 700 staff, said Aperee chief executive Paul Kingston.

Work starts early this year on a €12m investment with 100 beds at a former Church of Ireland rectory in Glanmire on 5.8 acres to include a Montessori.

In a pre-Christmas interview with Irish Examiner, Mr Kingston had said they were ‘sale agreed’ on a number of Cork, Limerick, and large regional towns sites “which we are looking at closing out by the end of the year or early next year”.

  • Details: Savills 021-4271371

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