Norwegian investment manager Oslo Capital Partners announced on Thursday that its Fund I has sold its social infrastructure portfolio for NOK 1.4 bn (€140 mln) to Kinland, a Whitehelm Capital portfolio company.
Oslo Capital, which was founded by partners Runar Rønningen and Martin P. Hoff in 2019, said that the portfolio encompasses 30 social infrastructure assets including pre-schools, nursery homes, mental health care properties, and a hospital. 21 care units and one hospital are in Finland, while 7 day care units and one public office building is in Norway.
The multi-tenant portfolio has a gross lettable area (GLA) of 38,000 m2 with major care operators on double/triple-net leases with a remaining WAULT of close to 14 years.
‘We are proud to have built a strong portfolio of high-quality assets, but as part of initiation of our second fund, we have decided to sell our portfolio,’ said Martin P. Hoff, managing partner at Oslo Capital Partners.
‘Oslo Capital Partners has a strong track-record with social infrastructure, and has built a pan-Nordic and high-quality portfolio in just a few years. This multi-tenant portfolio with 30 properties has solid tenants in leading care operators on long leases, which attracted significant interest from both Norwegian and international investors,’ commented Bård Bjølgerud, CEO & Partner at Pangea Property Partners, which acted as financial advisors together with Mrec.
Nordic Social Infrastructure Invest II
Oslo Capital Partners said that it is preparing the launch of its second fund, Fund II, which will follow the same strategy as Fund I, targeting social infrastructure assets in the Nordic region, but with a larger size to increase the economies of scale and to achieve better financing terms.
‘We continue to see strong deal flow and will be inviting both our existing investors and selected new clients to participate in Fund II. We are looking forward to build upon the success from Fund I and to optimize returns through larger scale,’ added Runar Rønningen, partner at Oslo Capital Partners.
Oslo Capital Partners has already identified a deal pipeline which fits the investment criteria for Fund II. These properties are to provide essential public services, and tenants will be both public and private with its majority of income from public support, often structured in long triple-net lease contracts.
