Nordic fund manager Slättö has entered into a conditional agreement to acquire a public use portfolio with 47 properties totaling approximately 87,000 m2 from Estea Omsorgsfastigheter.
The portfolio, with an underlying value of around €300 mln, is located in large municipalities in Sweden with a focus around Stockholm and Gothenburg. It consists mainly of elderly care homes with a remaining lease duration of about nine years.
Slättö operates in the Nordics with a thematic investment strategy. The firm said that the acquisition fitted well into the existing portfolio of Slättö Core+ with a focus on strong, sustainable cash flows.
For Slättö, the acquisition allows it to establish 'public use' as a new business sector, supplementing the company’s existing themes in Nordic residential, logistics and light industrial as well as hotel.
'Slättö has previously invested in selective acquisitions and projects within the public use segment. We have a strong belief in future demand for these types of assets and look forward to managing and developing this portfolio, as well as assessing further investments in public use,' said Erik Dansbo, senior partner and chief investment officer at Slättö.
Slättö Core+, established in 2019, is a Nordic fund investing in real estate with a robust and sustainable cash flow profile and a Nordic institutional investor base.
With this transaction, Slättö Core+ expands its portfolio to exceed a balance sheet total of SEK 10 bn (€0.9 bn). The portfolio, where 70% of the properties are environmentally certified, further enhances the fund’s sustainable position.
