Samhällsbyggnadsbolaget i Norden AB (SBB) has acquired a portfolio of elderly care homes and children’s day care centres in Finland from eQ Asset Management’s real estate fund for €142m.

SBB said the acquisition of the 27 retirement homes and 11 preschool properties from eQ Care will be financed through equity and bank loans.

Ilija Batljan, CEO and founder of Samhällsbyggnadsbolaget i Norden AB, said: “The transaction strengthens our earnings well and creates continued good opportunities for value creation and growth in value.”

SBB targets community service properties throughout the Nordic region and rental apartments in growth regions in Sweden.

eQ Care said the deal is the fund’s first substantial divestment.

Tero Estovirta, head of real estate investments at eQ Asset Management, said: ”Through this transaction, we are shaping eQ Care fund’s portfolio in the desired direction.

“In connection with this deal, the fund strengthens its position as owner and developer of larger and more centrally located care and communal properties while improving the effectiveness of its operations.”

Estovirta said, following the disposals, the number of properties decreases to 149 from 197 while increasing the average size of the assets, which also improve the fund management.