Real estate investment manager Nrep has formed a partnership with Swedish care home developer Sehlhall Fastigheter to develop a portfolio of care and nursing home facilities, valued at around €700m.
As part of the partnership, Nrep has invested an unspecified sum into Sehlhall’s platform and will become the majority owner of the company over time.
Nrep, which is investing on behalf of its European value-add fund NSF V, is injecting the capital to help Sehlhall to scale its operations and build a portfolio of properties for long-term management.
The partnership’s initial plan is to develop at least 40 new care home developments across Sweden over the next five years.
Nrep, the real estate investing arm of Urban Partners, already has a €1.6bn exposure to the care home sector, primarily through its Altura platform brand, which currently manages around 60 care assets across the Nordics.
Nrep said Altura will continue to operate as a distinct platform within Nrep, with ongoing plans to expand its portfolio of elderly care facilities via acquisitions, independently of Sehlhall.
Rune Kock, CEO at Nrep, said: “We are entering into this venture with Sehlhall as a long-term and active partner. Both of our organisations share a clear commitment to strengthening Sweden’s social infrastructure – an increasingly vital mission in the face of today’s welfare challenges.
“Over the years, we’ve followed Sehlhall’s impressive progress closely and have already experienced the strength of our collaboration through previous successful partnerships.
“As the market leader in sustainable care facility development, Sehlhall is uniquely positioned for long-term growth. Together, we are focused on building a high-quality, enduring portfolio that sets a new standard for elderly care in Sweden.”
Dan T Sehlberg, CEO and founder of Sehlhall, said: “With Nrep as a new co-owner, Sehlhall gains the ideal investment partner to strengthen our execution capabilities. This capitalisation enables us to continue growing our existing platform and to carry out even more projects for long-term asset management.
“We are pleased to be growing our contribution towards addressing Sweden’s demographic challenges. This feels both important and inspiring.”
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