Cureus continues to hold its own in project development in the second quarter of 2023

Press release

Cureus continues to hold its own in project development in the second quarter of 2023

• Completions Q2 2023: 314 care and assistend living units in four projects
• Construction starts Q2 2023: 197 care and assistend living units in two projects
• Various operators agree long-term leases
• Properties to the most modern standard and energy-efficient KfW and DGNB specifications
• Survey of municipal representatives exposes dangerous fallacy about care provision in 2040
• Sustainablity report 2023 published

Hamburg, 5 July 2023. Cureus, an integrated property company that specialises in developing and actively managing its own care home portfolio, continues to hold its own in the generally challenging economic situation and further expands its property portfolio. From April to June 2023, the company completed a total of four projects with 314 care and assisted living units in Lower Saxony and North Rhine-Westphalia. In the entire first half of 2023, there were thus seven projects and 666 units. In addition, construction got underway on two new projects at one location with 197 care and assisted living units during the course of the second quarter 2023. Looking at the entire first half of 2023, there were four projects and 395 units. All of the projects are managed in conjunction with the company’s established network of operating partners.

"The huge demand for new care places is well known, as our recently published survey among local political decision-makers has once again made clear," says Gerald Klinck, CEO of Cureus, adding: "Consequently, more needs to be built, but as before, the current market situation is slowing down construction in many sectors, including the urgently needed care real estate sector. The problem: construction costs remain at a high level and the financing of new projects has become lengthy and more expensive. And the later refinancing via the rents is also a fine line, because the operating side currently has to ensure its economic viability with the utmost sensitivity in order to be able to fulfil its care task. In the end, we can only appeal to the political decision-makers to take appropriate measures to facilitate construction, to promote financing costs and to ensure the economic viability of care operations. This is the only way to keep the urgently needed construction activity going and to attract new investors for this important asset class."

Cureus survey of municipal representatives exposes dangerous fallacy about care provision in 2040

65 percent of municipal decision-makers expect a clearly higher demand for care places in their district or independent city by 2040 compared to 2022. Another 26 percent see at least a somewhat higher need. When asked about the segment in which they are most likely to see a greater need for the creation of care capacities, only 31 percent of the respondents named inpatient care. Significantly more, namely 43 percent, named assisted living. These are the results of a representative survey conducted by the opinion research institute Civey, for which around 1,500 local political decision-makers in Germany were questioned. "This preference for care in one's own home is quite understandable from a human point of view, but: inpatient care is not a question of choice – for those who depend on it, assisted living is unfortunately no longer an alternative," warns Curesu-CEO Gerald Klinck. Further details here…

Sustainability Report 2022 published

For the third time in a row, Cureus has evaluated its business operations with regard to ESG aspects and prepared a comprehensive sustainability report. Once again, important events, goals and key figures from the property portfolio, construction sites and office operations were identified and highlighted. The report contents are again aligned with the criteria of the Global Reporting Initiative (GRI) and the European Public Real Estate Association (EPRA). The report can be downloaded here...

Portfolio structure at the end of Q2/2023

Property portfolio

The portfolio now comprises 58 leased properties with 5,642 care places, 628 assisted living units and 23 other units.

78 projects under construction and in the pipeline

Cureus currently has 2,371 care places, 288 assisted living units and 79 other units under construction in 28 projects.

Cureus currently has approx. 4,320 care places, 1,510 assisted living units and 10 other units in 49 projects in planning. All projects in planning have already been notarised.

Cureus projects can comprise different construction phases at one location which are later combined as one leased property.

About the projects started and completed in Q2 2023

Cureus continued to successfully expand its property portfolio in various regions of Germany in Q2 2023. The company reports four completions at three different locations, comprising 80 care and 188 assisted living units as well as 46 places in a day care. In addition, two projects were started at one locations with a perspective of 131 care places, 20 places in a day care and 46 assisted living units.

In April 2023, for example, a Libento senior residence in Heimerzheim (North Rhine-Westphalia) with 80 care places was completed, handed over and opened directly. The building meets the energy-efficient KfW 40 standard and has, among other things, a restaurant with terrace and fresh kitchen, a fireplace lounge with library, a care bathroom, an in-house laundry and a dementia living level. (Details of the project)

At the beginning of May 2023, Cureus completed a complex consisting of two construction phases with a total of 84 assisted livind apartments and a day care facility with 26 places in Gladbeck (North Rhine-Westphalia) for the SCHÖNES LEBEN Group. The building was constructed according to the KfW 40 standard. Under the name "SCHÖNES LEBEN Gladbeck im Zentrum", 1.5 to three-room flats in sizes ranging from 37 to 100 square metres are now offered with additional services. (Details of the project)

In Wolfsburg (Lower Saxony), "SCHÖNES LEBEN Wolfsburg an den Sandkruggärten" was completed and handed over to the SCHÖNES LEBEN Group in June 2023. Here, too, construction was carried out according to KfW 40 specifications. The assisted living apartments are between 41 and 102 square metres in size and have two or three rooms. (Details of the project)

At the end of June 2023, construction began in Wolfenbüttel (Lower Saxony). A modern care and residential complex in accordance with the KfW 40 standard will be built here by spring 2026. This will comprise 131 care places, a day care facility with 20 places and 46 assisted living apartments in two construction phases. DGNB silver certification is being sought. (Details of the project)

Groundbreakings and topping-out ceremonies were also celebrated in the past quarter: In April 2023, a topping-out ceremony was held in Essen-Altenessen (North Rhine-Westphalia) for around 150 care and assisted living units, followed by a topping-out ceremony in Herne-Mitte (North Rhine-Westphalia) for around 160 care places in May 2023, and in June the foundation stone for the project in Rathenow (Brandenburg) with 140 care places was ceremoniously laid.

Planning and construction in accordance with the Cureus system approach

All Cureus new-build properties are designed and built in accordance with the Cureus standard for system care homes. This specifies uniform, high quality standards and is oriented, among other things, towards the requirements of care home operators, residents and caregivers. This systematic approach enables Cureus to optimise both structural processes and the properties themselves from the inside to the outside. This relates, for example, to the dimensions and arrangement of every room in order to maximise to space and walkways. Cureus care homes are also designed and equipped for maximum utility. Interior corridors benefit from as much daylight as possible, every room has floor-to-ceiling windows and attractive views of the surrounding area, while the modern bathrooms and window fronts always follow the same standardised system approach. The architecture and facade of each residence incorporate individual touches and are constructed to the highest quality standards, integrating seamlessly into their surroundings. The Cureus system approach also prioritises sustainability, both in terms of a care home’s long-term economic viability and its impact on the environment. All Cureus care homes are, for example, constructed in accordance with the ‘Effizienhaus 40 Standard’ of the KfW and target the DGNB silver certificate. Bulk procurement of floor coverings and elevator systems, for example, achieves significant cost synergies. Long-term maintenance contracts that cover several properties also reduce costs for care home operators. The constant review and optimisation of the Cureus system care home standard guarantees the construction of care homes that truly meet demand.

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About Cureus GmbH

Cureus GmbH has its operational headquarters in Hamburg and, with more than 15 years of experience and a team of around 155 employees, is an experienced integrated property company with special expertise in care homes in Germany that develops and manages its own property portfolio actively, while repeatedly selectively putting individual properties up for sale.

With its “system care home” standard, Cureus has developed a unique standard for care homes for inpatient care and assisted living, which can be implemented as a scalable solution independent of location. Based on the current legal requirements as well as the needs of operators, residents, and communities, Cureus is establishing new, consistent quality standards with its system care homes. The company is thereby offering a highly efficient product, which combines higher cost-efficiency at lower cost structures with improved living and service quality in the care sector.

With an average age of four years, the company’s property portfolio is still relatively new and, as of 30 June 2023, consists of 58 properties on long-term leases to care home operators with 5,642 care places and 628 assisted living units worth around EUR 1.1 billion. In addition, the company has 28 projects currently under construction and 49 notarised projects, which will add a further 6,690 care places and around 1,800 assisted living units to the portfolio by 2027. These projects have an expected value after completion of around EUR 1.4 billion. www.cureus.de/en