Northern Europe-focused investor Northern Horizon has executed an €80 mln investment in Finnish care homes for its Nordic Aged Care fund.
The transaction comprises 20 properties, most of which are due for completion in 2017.
'These deals are a great start to the fund’s investment strategy in Finland. The sellers as well as the tenants of these care homes are the Finnish care segment’s leading property developers and operators, respectively. All of the investments are into brand new, state-of-the-art elderly care facilities on long leases,' commented Northern Horizon’s head of Finland Jussi Rouhento.
'The deals are predominantly forward purchases with one being a forward funding. We are actively working on further projects,' Rouhento added.
Nordic Aged Care is Northern Horizon‘s third specialised care home fund, focusing on care home developments let on long leases to leading public and private care operators. Following its first closing in May 2016, the fund currently has €163 mln of equity commitments from a selection of European institutional investors, and has a €250 mln fundraising target. Over the second half of 2016 the fund’s signed portfolio of care homes in Sweden and Finland has already reached approx. €100 mln.
After this deal, the total number of care homes acquired by Northern Horizon's team reaches 80, including the 57 care properties acquired by Nordic Aged Care two predecessor funds.
'We’re very satisfied with the pace of capital deployment in Finland, a traditionally very strong market for us. This series of Finnish deals follows our recent entry into Sweden and contributes to a balanced and diversified portfolio composition, as per the fund’s strategy. We now look forward to further care home acquisitions in 2017 across the Nordics,' said Michael Schönach, Northern Horizon CEO.
