Cape Natixis, State Street set up nursing home fund

Cape Natixis and State Street Global Investments have announced the first closing of Domani Sereno Real Estate, a closed-ended investment fund. The fund is aimed at investing in properties which will be leased to major nursing home operators both in Italy and abroad. Listed nursing home specialist Arkimedica is teaming up with Cape Natixis and State Street and will provide advisory services to the fund. A total of 90% of Domani Sereno funds, which currently stand at EUR 25mln, will be invested in nursing homes. Domani Sereno is targeting total funds of up to EUR 200-300mln.

The vehicle has made its first acquisitions with the purchase of two nursing homes with a total of 143 beds in Northern Italy's Piemonte region for EUR 7mln. The negotiations to purchase an additional property providing about 80 beds are at an advanced stage, Arkimedica said in a statement. The fund is being marketed by Cape Natixis Sgr, an Italian real estate advisor on closed-ended structures and the majority shareholder of Arkimedica. State Street Global Investments is managing the fund.

'Arkimedica aims to manage a total of 5,000 beds in nursing homes by 2010, and subsequently a partnership with a nursing home real estate fund will allow us to focus on the management of these structures, while leaving the real estate activities related to the operations to a specialised partner', said Torquato Bonilauri, vice president of Arkimedica.

'Domani Sereno will not be a captive fund,' said Marco Vismara, CEO of Cape Natixis. 'The fund will also invest in assets that are not being managed by Arkimedica.'