Nordic asset manager Northern Horizon has exited its second care home fund via a sale to a vehicle managed by Finnish investment bank Evli.
The transaction values Healthcare II fund's 30-asset Finnish portfolio at €140.8 mln.
The exit of Healthcare II, a fund launched in December 2013, delivered a net Internal rate of return of approximately 29% and an equity multiple of 1.7x to its investors, according to Northern Horizon.
Jussi Rouhento, fund manager of the Healthcare II fund and Northern Horizon’s Head of Finland: 'The exit completes the story of one of the highest quality healthcare real estate portfolios in Finland. The portfolio consists of new assets 100% let on leases with an average remaining term exceeding 12 years. By exiting now, we were able to achieve a 50% capital gain on the equity invested. This is why we feel that it was in the investors' best interest to exit now.'
Andreas Michelsson, co-fund manager of Healthcare II, added: 'In terms of net IRR, the fund has surpassed its original goal by a factor of three while delivering the targeted equity multiple in less than half the expected time. From our point of view, the portfolio is currently at its peak and there was no more work for us to be done to further enhance the value.'
JLL and Krogerus advised Northern Horizon on the structured sales process. Krogerus provided legal advice.
Christian Hohenthal, head of capital markets at JLL Finland, said: 'We are extremely pleased to facilitate one of the largest transaction in the Finnish healthcare segment which follows the success story of the pioneering Northern Horizon Healthcare I fund sold in 2016. 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.'
