ASG establishes Carestone, Germany’s largest developer of senior housing
Carestone results from the integration of the WI-IMMOGroup and WirtschaftsHaus businesses
The new entity has a development pipeline with a projected value of €1.4 billion
Carestone to boost deliveries by more than double in 2020 to 2,500 units
Jersey, U.K., June 24, 2019 – ASG, which targets special investment opportunities in select European real estate markets, has integrated two specialist senior housing developers into a new entity called Carestone, creating Germany’s largest platform with a pipeline to deliver €1.4 billion of projects.
Rebranding WI-IMMMOGroup and WirtschaftsHaus as Carestone marks the next stage in ASG’s strategy of creating a senior housing development platform in Germany, which faces a 300,000-unit shortfall in accommodation and care facilities for its elderly citizens by 2030. It follows ASG’s work to integrate the operations, management and more than 70 employees of the two businesses. A new headquarters for Carestone is currently under construction in Hannover.
Saul Goldstein, ASG’s Founder and Managing Partner, said: “Carestone is strongly positioned to address the accommodation needs of Germany’s ageing population. We saw that the fragmented market needed a platform of scale to deliver the new stock required, so deliberately avoided the scramble to buy existing assets. Our corporate acquisitions approach mirrors a lot of the thinking that went into our strategy for Instone Real Estate, the residential development business we built and listed last year on the Frankfurt bourse.”
Dr. Karl Reinitzhuber, Co-CEO of Carestone commented: “Up until now, both companies have been extremely successful, having developed and promoted the senior housing asset class for private investors over the last 20 years. Carestone will continue to develop on the strong success of both companies.
“I am convinced that the merger and joint venture will allow us to have more impact on the market as Carestone is a growth story. As the market leader, we focus on quality, reliability and long-term returns for our investors.”
A fund managed by ASG acquired WI-IMMOGroup in 2016 and purchased WirtschaftsHaus in late 2018. In January, ASG appointed Dr. Karl Reinitzhuber as Co-CEO in preparation of the integration of the companies. Prior to taking up this Position, Dr. Reinitzhuber held several senior leadership positions, including most recently Senior Advisor at HBS Global Properties & ILD Group and CEO at Unibail-Rodamco Germany GmbH.
Edwin Thiemann, former head of WirtschaftsHaus, will hold the role of Co-CEO.
Carestone plans to develop more than 2,500 senior housing units in 2020 and expects to generate revenues of more than €300 million.