Social property fund Samhällsbyggnadsbolaget i Norden (SBB) has acquired 48 Finnish properties - mostly elderly care homes and children's day care centres - from healthcare fund eQ Care for €142 mln.
JLL advised eQ on the deal, which represents the second-largest ever healthcare transaction in Finland.
According to JLL, the weighted average unexpired lease term of the portfolio is nine years, and the properties, comprising some 50,280 m2, are fully let.
'Through this transaction we are shaping eQ care fund’s portfolio in the desired direction,' said Tero Estovirta, head of real estate investments at eQ Asset Management. '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. The number of properties decreases from 197 to 149 while increasing the average size of the assets, which also improve the fund management.'
Estovirta added: 'After the divestment, the capital region’s share of the fund is 57% and the share of elderly care homes is 40%.'
Some 90% of the portfolio was built between 2008 and 2018, according to eQ. The total rental income is €9.1 mln, with a net operating income of €8.6 mln.
'The deal strengthens our earnings and creates continued good opportunities for value creation and growth in net asset value,' added Ilija Batljan, CEO and founder of SBB.
'There is a very good momentum in the Finnish investment market, particularly for large scale platform transactions, attracting strong investor interest as underlined by this significant portfolio deal which enables SBB to become one of the major owners in the Finnish healthcare segment,' concluded Christian Hohenthal, head of capital markets at JLL Finland.
JLL acted as eQ Care fund’s sole commercial advisor on the targeted sales process. Avance provided legal advice.
