M&G will finance the development of 54 elderly care and assisted living home to be let to the Municipality of Motala on a 25-year lease upon completion. With 32 percent of the population over the age of 65 – a sharp increase of 21 percent over the last 10 years – there is a distinct shortage of purpose-built care homes in this popular lakeside holiday destination. It is the Fund’s second deal in Sweden’s care home sector and will enable the Municipality to provide high quality facilities for the local community whilst offering M&G’s investors with inflation-linked cash flows secured by a government tenant.
“We are pleased to complete the Fund’s second deal in the Nordics with the same vendor, and also our second in the capacity constrained Swedish elderly care sector, which needs 700 new care homes by 2026 to cope with demand. The acquisition strengthens our position in the region and brings our total Nordics portfolio to EUR 750 million across 17 assets,” says Thorsten Slytå, Director, Nordic region, M&G Real Estate.