Gribskov Municipality has just announced that the OK Foundation will be care provider in a new nursing home in Gilleleje. ATP Real Estate, through its subsidiary Seniorbolig Danmark”, constructs the nursing home and leases it to the OK Foundation, which supplies all care related services.

Northern Horizon is exclusive investment advisor for ATP Real Estate in connection with development and investments in Danish care homes. The development takes place in close cooperation with municipalities and the care providers. Based on a recently revised legal act on elder care (“Friplejeloven”), the care provider leases the building of Seniorbolig Danmark.

Innovative Public-Private Cooperation in the Elder Care Sector

The nursing home in Gilleleje opens a new chapter for Gribskov Municipality in Public-Private Cooperation within elder care, and utilizes some of the revised care acts new opportunities. The nursing home requires no municipal guarantees or deposits.

The revised act on elder care implies that pricing of elder care services shall reflect the local municipality’s cost structure and will therefore closely reflects the municipal price, service and quality levels. As a consequence, the new nursing home will cost the same, for Gribskov Municipality and the citizens, as a corresponding service offer from a municipality owned nursing home. The municipality of Gribskov only pays for the residents who, after visitation, by themselves chooses to stay at the new nursing home.

Increasing Market for Pension funded nursing homes

The need for care homes will increase significantly in the coming years. According to Danish Statistics, the number of Danes over 82 years will increase by over 80 per cent in the next 15 years, corresponding to more than 150,000 additional citizens in the often care demanding age. At the same time, some of the existing (municipal) nursing homes will have to be replaced, supporting a growing market for private care homes. The vast majority of municipalities therefore have a significant challenge that must be solved in line with all other municipal operating and construction tasks.

Northern Horizon expects a significant interest in investments in nursing homes, homes for disabled people, senior housing and psychiatric care homes in the coming years.