Northern Horizon said on Thursday that it has raised €100 mln of capital commitments at the first closing of its fourth Nordic aged care Fund, NACF IV.
First close investors include Nordic and continental European pension funds, endowments and family offices, Northern Horizon said.
‘The strong first close – supported by both follow-on and new institutional investors – demonstrates the strength of the investment opportunity and the quality of the team on the ground,’ it added.
The Fund has committed to two brand-new Danish aged care assets, which are well located and long-let to strong operators, providing over 130 beds as well as a purpose-built senior housing asset. In addition to these seed assets, Northern Horizon has a strong transaction pipeline of off-market opportunities which it can now execute, led by assets in Denmark.
The Fund’s strategy is to acquire modern aged care assets which are let on long-term leases to strong private or public sector operators across the Nordics. The Fund is targeting a net IRR of 7-8% and income yield of 5.5%.
‘In these uncertain times, the long-term leases we put in place to strong operators in strong locations – and the ever-growing demand for beds – offers investors strong and stable cashflows. We are looking forward to further executing on the exciting pipeline we have built,’ said Riikka Moreau, fund manager at Northern Horizon.
‘As well as offering investors an attractive risk-adjusted return, we strongly believe this Fund will help to improve the lives of residents by providing funding for modern, high quality and fit-for-purpose accommodation. Combined with our ambitious environmental targets, we are proud of the positive impact the Fund is expected to have,’ commented Milda Dargužaite, CEO, Northern Horizon.
Northern Horizon is being advised by JLL’s Funds Placement team.
