Specialised healthcare real estate investor Northern Horizon has successfully deployed €648 mln on behalf of its fourth Nordic healthcare fund, Aged Care IV (ACIV).
As of March 2024, the fund owns 44 assets and has committed to three assets under construction, bringing the portfolio to 47 assets in total.
ACIV invests in modern, fit-for-purpose care homes and similar residential care assets in the Nordic countries.
The fund’s strategy addresses the structural shortage of care homes and senior living concepts as a result of an ageing population in the Nordics, while at the same time seeking to help solve a societal challenge by providing good quality living conditions for the seniors.
The buildings are leased to private and public care operators on long-term leases.
‘We are pleased to have exceeded expectations since the final close in December 2022. While the real estate transaction volumes in general have been very low in the Nordics in 2023, we have seen many opportunities in the healthcare segment which has allowed us to be selective to fully benefit from the current market situation’, said Kasper Wehner, co-fund manager for ACIV and investment director in Denmark.
The fund’s most significant transactions include a portfolio of 15 prime healthcare properties in Finland acquired from eQ in December 2023; a portfolio of 6 care homes, two kindergartens, and 23 senior living units in Denmark acquired from NREP in March 2023; and a portfolio of 4 Swedish aged care properties acquired from SBB in July 2022.
Following the fund’s last acquisition of a care home under construction in Hørsholm, Denmark, the fund’s portfolio is diversified across three countries, 31 municipalities, six segments, and 24 tenants.
The fund has ambitious ESG requirements for its asset portfolio, and more than half of the assets already have or are expected to achieve BREEAM or similar certification.
‘We are very well positioned to create value for investors in this segment, and also in the future. We have proven access to the best off-market opportunities. We are optimistic about the value proposition of investing in social assets going forward, and we continue to see a lot of opportunities,' added Lars Ohnemus, chairman of the board, and acting CEO.
