Northern Horizon Aged Care Fund IV is a direct real estate investment fund investing in care homes for the elderly and similar residential care assets in Sweden, Finland, Norway and Denmark.
As its predecessors Healthcare I, Healthcare II and Nordic Aged Care Fund – Aged Care IV presents an attractive opportunity to capitalize on the long-term structural demand-supply imbalance for aged care facilities in the Nordic region.
Northern Horizon has since 2007 developed and acquired more than 100 care homes for the total value of circa €800 million across four institutional care home funds. Its current – Nordic Aged Care Fund is approaching its target of €600 million gross asset value upon full deployment.
- An increasing market demand for Aged Care facilities in the Nordics spurred by a rapidly ageing population.
- Increasing privatisation in the Aged Care segment across the Nordics opening opportunities for private investment.
- High level of cash flow stability and predictable returns intrinsically backed by government funding and high private wealth.
- Emergence on new types of aged care assets which expands the pool of attractive investment properties and provides risk diversification benefits.
The purpose of the Fund is to provide Investors with a positive return and to achieve long-term capital growth through a risk-controlled, responsible and diversified investment strategy in Aged Care real estate Assets in the Nordics. Investment will take the form of:
- Acquisition of care Assets on Forward Funding and/or Forward Purchase basis;
- Acquisition of existing individual care Assets; or,
- Portfolios of care Assets.
The individual acquisitions and small portfolios will be aggregated into larger diversified portfolios with institutional appeal.
All Assets will be leased to strong public or private care operators (tenants) on long term (typically 10-30 years) lease basis. The Fund will focus on creating a modern portfolio which translates into low additional capital expenditure requirements.
The Fund will invest in long-term stable rental cashflow and will not be involved in the operational provision of care. It will therefore provide a core investment opportunity with a stable annual cashflow to the investors and potential for long-term capital growth.
|KEY FUND FEATURES|
|Fund name||Aged Care IV|
|Structure||Closed-ended Luxembourg S.C.Sp. SICAV-RAIF|
|Fund type||Closed-end, unlisted|
|Investment profile||Residential care properties for the elderly in the Nordics|
|Target equity commitments||€400 million|
|Term||8 years from Final Close plus 2 x 1-year extensions|
|Investment period||3 years from Final Close|
|Fund currency||EUR (local currency exposures will not be hedged)|
|Fund administrator||Pandomus S.A.|
|Fund depositary||ING Luxembourg S.A.|
|Country allocation||Sweden, Finland, Norway, Denmark. Max. 75% in each country|
|Sector allocation||100% care assets|
Property Sector Country City Aquired