In common with the rest of Europe, the population of the Nordic countries is ageing rapidly. This demographic development is anticipated to create substantial demand for residential care homes for the elderly in the coming decades. Nordic Aged Care aims to help meet the additional demand by expanding investment in elderly care homes and similar residential care assets beyond Finland to Sweden, Norway and Denmark.
We already see a substantial shortage of care facilities across the Nordics to accommodate the present and future need for more beds and more flexible care. This creates a unique opportunity for private equity real estate investors. We much appreciate the support of our first closers to the new fund, says Michael Schönach, CEO of Northern Horizon.
In addition to Aviva Investors Global Indirect Real Estate, the first close is backed by another leading European pension fund.
Successful track record
Nordic Aged Care follows in the wake of two previous care home funds managed by Northern Horizon. The first fund, Healthcare I, this year made a successful portfolio exit while the capital of the second fund has been fully deployed. The new Nordic fund will aim to leverage the increasing privatisation of healthcare facilities, the asset know-how, and relationships already established by Northern Horizon in the Nordic region.
“We have more than eight years’ experience as an investor in aged care assets, longstanding relationships with public and private care operators, municipalities and developers. This is a strategy we are very comfortable with,” concludes Michael Schönach.
Investment Strategy
Nordic Aged Care expects to acquire a mix of new-build assets, existing assets and assets for conversion. The Fund will not be involved in the provision of care, but will rather lease the premises to private and public care operators.
John Gellatly, Head of Europe, the Middle East and Africa for Aviva Investors Global Indirect Real Estate says:
“On behalf of our clients, we are very pleased to be supporting this initiative, with an experienced manager, which also plays into some strong demographic fundamentals. This offers attractive risk-adjusted returns based on indexed and stable cashflows and strong credit covenants.”
Northern Horizon is being advised by Capra Global Partners on the fundraise.
