Northern Horizon invests €648m in 47 care homes

Specialised healthcare real estate investor Northern Horizon’s fourth Nordic aged-care fund has been fully invested, deploying €648 million and bringing the portfolio to 47 top-tier assets across the Nordics, of which three are under construction.

Mariehjemmene Soro in Denmark, one of Northern Horizon’s assets
“We are pleased to have exceeded expectations since the fund’s final close in December 2022,” said Kasper Wehner, co-fund manager for Aged Care IV and investment director, Denmark, Northern Horizon. “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 have allowed us to be selective to fully benefit from the current market situation.”

Aged Care IV 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 helping to 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.

Among the fund’s most significant transactions are: the acquisition from eQ of a portfolio of 15 prime healthcare properties in Finland in December 2023; that of a portfolio of six care homes, two kindergartens, and 23 senior living units in Denmark from NREP in March 2023; and that of a portfolio of four Swedish aged-care properties 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.

As a pioneer in Nordic healthcare real estate, Northern Horizon has established itself as a manager of choice for institutional investors looking to invest in healthcare assets, the group said. Its healthcare real estate investment strategy has consistently delivered strong returns and successful portfolio exits, and the company sees further potential.

“We are very well positioned to create value for investors in this segment, and also in the future,” said Lars Ohnemus, chairman of the board, and acting CEO, Northern Horizon. “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.”

Author: Nicol Dynes

Source: Real Asset Insight