Finland: Northern Horizon adds portfolio of Finnish healthcare assets to new evergreen fund

Northern Horizon, a specialized healthcare asset manager in the Nordics, has acquired a Finnish portfolio of healthcare properties for its new evergreen healthcare fund, Aged Care and Social Infrastructure Fund, from eQ Community Properties Fund in an all-equity deal.

“This acquisition underlines our ambition to be the leading Nordic investment manager in social infrastructure,” said Christoffer Abramson, group CEO, Northern Horizon. “There is a growing need for modern healthcare assets in our region, and we are seeing a lot of interest from international investors who are attracted by the strong market fundamentals with high growth potential, strong returns, and a very attractive risk profile. We are very optimistic about our continued expansion.”

A hesitant market in Finland over the last two years has created opportunities to evaluate off-market standing assets and to select the ones most suitable for the Fund’s strategy, according to Northern Horizon.

The deal includes two properties in Espoo and Lahti with a total lettable area of approximately 3,500 square meters. Properties meet the high sustainability requirements set for the fund’s portfolio, and both assets are operated by Attendo, a leading care provider in the Nordic region. The average remaining lease term is 13.5 years, and both are fully inflation-indexed on a yearly basis.

“[This deal] aligns perfectly with our investment strategy,” said Jussi Rouhento, fund manager and head of Finland. “We have a significant pipeline, and we continue to look for opportunities.”

The portfolio will continuously grow in all the target countries with capital from existing and new investors.

Evergreen fund

Aged Care and Social Infrastructure Fund, with current assets under management of close to €700m, is the fifth healthcare fund managed by Northern Horizon. The fund is the result of a conversion of its third healthcare fund, Nordic Aged Care Fund, into an open-ended fund. The Finnish transaction represents the first addition to the new evergreen vehicle.

The Fund aims to invest in modern aged care homes and other social infra properties in Sweden, Finland, Norway, and Denmark. The seed portfolio comprises 63 high quality, care properties located in Sweden and in Finland. Premises are leased to private and public care operators.

After the transaction, Aged Care and Social Infrastructure Fund’s portfolio consists of 65 healthcare assets in Sweden and in Finland. The Finnish sub-portfolio comprises 43 assets. 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 of approximately 10 years.

eQ Properties Fund

The eQ Community Properties Fund is a real estate fund managed by the property investment team of eQ Group, a Finnish group of companies specialising in asset management and corporate finance. The parent company eQ is listed on Nasdaq Helsinki. Its Community Properties Fund invests in health care, service and community properties in Finland.

The businesses operating in properties owned by the Funds include: Elderly care and housing; Health care; Education and research; Public services; Daycare and early childhood education; Special needs housing.

Press release: Northern Horizon adds portfolio of Finnish healthcare assets to its new evergreen fund – Northern Horizon