The acquired portfolio consists of 15 high-quality assets with 450 care beds, 100% let on CPI-indexed leases with an average remaining term exceeding 13 years. The assets were built between 2016 and 2023, and they are all certified BREEAM Very Good or will achieve certification in the coming months.
We are very satisfied with this deal which aligns perfectly with our investment strategy. In a buyer-friendly market environment, we have been able to secure an attractive price. In addition, the portfolio‘s sustainability performance and the green building certifications have enabled us to obtain green financing with favorable terms, commented Jannika Kankare, Investment Director in Finland.
The assets have a total lettable area of approx. 20,000 sq.m. Most of the acquired assets are located in the attractive triangle between Helsinki, Turku and Tampere which are the most important cities in Finland. The rest are located in major university cities.
The purchase represents a milestone because it marks the final additions to the fund’s Finnish sub-portfolio. After the transaction, the Finnish sub-portfolio comprises 27 assets. The total lettable area of the Finnish assets is 40,000 sq.m. The assets are 100% occupied by a strong tenant mix, including Attendo, Mehiläinen, Esperi Care, and several public tenants with the blended sub-portfolio WAULT exceeding 15 years.
We had the final close for Aged Care IV just one year ago. We have seen a lot of opportunities in the market this year which has enabled us to build up the portfolio in a very short amount of time. We have already completed two major portfolio acquisitions in Sweden and Denmark. With the latest transaction in Finland, we are pleased to be able to report to our investors that the fund is almost fully invested, added Kasper Wehner, Co-Fund Manager for the fund.
Northern Horizon wishes to thank its advisor, Krogerus, as well as eQ and their advisors for an open dialogue and a good sales process.
About Northern Horizon
Northern Horizon is an independent real asset manager that aims to deliver long-term value to investors, communities, and society through healthcare and other specialized real estate investment strategies. As a pioneer in Nordic social asset investments, Northern Horizon has acquired more than 140 care homes across the Nordics since 2007 and has built longstanding relationships with developers and operators.
About Aged Care Fund IV
Nordic Aged Care Fund IV was launched in 2020. The strategy is to acquire modern aged care assets across the Nordics which are let on long-term leases to strong private or public sector operators. The strategy of ‘Aged Care Fund IV’ is to acquire a diversified portfolio of stable, income producing aged-care assets on long-term, 100% inflation linked leases to strong private or public sector operators across the Nordics.
About eQ Community Properties Fund
eQ Community Properties Fund is a real estate fund managed by the property investment team of eQ. The fund is the largest private social infrastructure owner and developer in Finland. Established in 2012, eQ Community Properties Fund invests in healthcare, service, and community properties in Finland. The properties are located in the capital region and selected growth centers.