Stockholm-headquartered global investment firm EQT’s Real Estate II fund has partnered with Italian construction group Arco Lavori to launch a €300 mln venture focused on developing a portfolio of purpose-built, affordable grade-A senior care homes in Northern Italy.
The JV represents EQT Real Estate’s first investment in Italy and launches having secured five initial sites with the ability to provide an aggregate of 1,010 beds. The first two senior care homes are expected to be delivered by late 2022 and in the beginning of 2023.
The JV’s five initial projects are located in the Lombardy and Emilia Romagna regions, which are particularly in need of senior care facilities due to the supply-demand imbalance and low provision rate of care home beds for senior citizens driven by Italy’s growing elderly population.
The assets will be developed with strong sustainability credentials. Where possible, care homes will utilize photovoltaic panels on the roof and benefit from measures aimed at incentivizing the promotion of recycling of waste and rainwater management. The JV’s care homes will also seek to achieve green certifications such as Leed and Well, as well as following specific ESG principles.
‘EQT Real Estate is thrilled to be entering the Italian healthcare market and investing in a sector which is lacking grade-A facilities and is expected to benefit from robust demographic trends in the country,’ said Alessio Lucentini, managing director, investment advisor and head of Italy, EQT Real Estate. ‘In addition to the initial five sites, we are currently evaluating a growing pipeline of projects, mainly in Northern Italy, to build a large scale, resilient and downside-protected portfolio.’
The operation represents EQT Real Estate’s first transaction in Italy since the business line was established in 2015.
