Nextpoint, the Israeli socimi, has confirmed the acquisition of a residence for the elderly in Burguillos, Seville. The deal, valued at €2.1 million, has been officially communicated to BME Growth, the stock market where the company is listed.
This financial movement has been carried out with 95% of the volume covered by a participating loan granted by an investment partner. This loan carries a fixed interest rate of 8% and a variable part of 80% on the net profit of the property, applicable after its divestment. The remaining 5% of the investment was covered by Nextpoint's own funds.
The residence, which has an area of 1,681 square metres and 30 rooms, was acquired together with a 25-year lease agreement with Mimara Residencial, a specialised operator. This contract includes a mandatory 15-year term and a minimum initial yield of 7.8%.
Nextpoint doubles its turnover
Nextpoint has experienced significant growth in its business, doubling its turnover in 2022 to two million euros. This increase is largely due to the start-up of the assets acquired in recent years. The company currently has fifteen assets in operation, including residences for the elderly, hotels and tourist flats.
In addition to its revenue growth, NextPoint has seen the value of its assets increase by 25% in the last year, from €50.6m in 2021 to €63.5m by the end of 2022. This revaluation, along with increased revenues, has boosted the company's net profit from €1.27m in 2021 to €6.88m in 2022. On the organisational side, Nextpoint has undergone changes to its board of directors, including the departure of Omer Rabinovitz and Liron Sason, and retaining Teddy Gabriel Lin as chairman from January 2022 through the Amor Luz partnership.
A recent JLL report highlights that due to the demographic structure of Spain, the second longest-living country in Europe, it is projected that to meet demand in 2030, the number of places in retirement homes will need to increase by at least 190,000. This represents an associated investment of approximately 5.7 billion euros.