Europa Capital, the pan-European real estate investment manager, has acquired a senior living development project in Helsingør, Denmark, on behalf of its latest value add fund.
The investment, which represents a €45 mln development opportunity, has been made through a joint venture with Copenhagen based Keystone Investment Management and Ailon Group.
Hugo Black, partner at Europa Capital, commented: 'This acquisition provides an excellent opportunity to convert a former hospital into state-of-the-art senior accommodation and it marks an exciting milestone for Europa Capital as we expand on our existing residential expertise through our first investment into the senior living sector.
'We draw on our significant experience in the living sector more broadly, having been an early mover in the residential space and have assembled a substantial portfolio across build-to-rent and student accommodation since 2013.
'The senior living sector is supported by strong fundamentals and working alongside our trusted partners Keystone, with whom this is our fifth deal together, and Ailon, who are highly experienced in the space, we look forward to delivering robust returns to our investors.'
The JV will develop a 5,300 m2 complex with 58 assisted living units let to Attendo, a leading Nordic care provider, and 108 private build-to-rent units that will be specifically adapted for seniors.
The 14,200 m2 site will also include a commercial unit, which is expected to become a GP surgery. Construction is underway, with completion expected in Q1 2023.
The development is located in Helsingør, north of Greater Copenhagen in the Capital Regio” of Denmark, closely linked with Copenhagen and the rest of the region through an extensive road grid and public transport network.
Europa Capital has a long-standing track record in the living sector, which represented 80% of its transactions activity in 2020. To date, Europa Capital has invested €1 bn into PRS and student accommodation, totalling over 10,500 beds across the UK, Spain, Denmark and Germany.
Morten Schultz, partner at Keystone Investment Management, said: 'We are delighted to be invited as partners for this joint venture and proud of the trust that Europa Capital and Ailon are putting in us to develop this interesting property. We are keen on making sure that this development becomes a highly valued addition to the local community.'
Lucy Jennings, director at Ailon Group, added: 'Senior living is an emerging asset class in Denmark with demand spurred by strong demographic trends. There is considerable opportunity for growth and innovation in the sector. This is a very exciting project and will be a building with character in Helsingør.'
Savills operational capital markets Europe and Colliers Denmark advised on the acquisition.
