The fund invests in modern, fit-for-purpose care homes across the Nordics. The fund’s strategy is built on the global demographic megatrend of an ageing population which is generating strong growth in the underlying aged care real estate sector.
The Fund received equity commitments from both follow-on and new institutional investors, including prominent pension funds, insurance companies, asset managers, endowments, and family offices from across Germany, France, UK, Finland, Switzerland, and Iceland.
We are pleased by the continued interest from our existing and new investors, who are attracted by the fund’s value proposition, offering investors stable cashflows and an opportunity to help solve a growing societal challenge. As one of the pioneers in social asset investments, Northern Horizon is uniquely positioned to invest in this segment, commented Milda Dargužaitė, CEO.
To meet increasing investor interest in reducing the environmental footprint, ambitious ESG requirements have been set for the property portfolio, including environmental certification targets and environmental performance goals.
The Fund has so far acquired or committed capital to 19 properties across Finland, Sweden, and Denmark. The largest investment so far is a portfolio of aged care properties in Sweden, acquired from SBB in 2022.
We see a lot of opportunities in the market at the moment and are very well positioned to create value for our investors”, added Milda Dargužaitė.
JLL acted as the exclusive capital advisor and European placement agent to Northern Horizon.
About the Fund
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. The Fund is targeting a net IRR of 7-8% and income yield of >5.5%.
About Northern Horizon
Northern Horizon is an experienced real estate investment manager with expertise in the Nordics and Northern Europe with current AUM of over EUR1bn. Since 2007, Northern Horizon has been a pioneer in the aged care market, investing over EUR900m in more than 125 assets through three predecessor funds. Longstanding relationships with developers and operators have enabled the team to source c. 95% of all investments off-market.