Northern Horizon, specialized healthcare real estate investor, has acquired a portfolio of 15 healthcare properties for approx. EUR 75 million for its fourth healthcare fund, Aged Care IV. The portfolio was acquired from EQ, the largest private social infrastructure owner and developer in Finland. The portfolio is regarded as one of the highest quality care home portfolios ever sold in Finland.
The acquired portfolio consists of 15 high-quality assets with 450 care beds, 100 percent 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 percent 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.
Krogerus was the advisor to Northern Horizon.
JLL advised EQ