Owing to investor demand the open-ended Healthcare Property Fund Europe, launched in the first quarter of 2020, is likely to increase its target size according to fund manager BNP Paribas REIM.
The fund has already secured equity commitments of €340 million, which with leverage gives it €500 million spending power. Structured as a core open-ended Luxembourg SICAV, Healthcare Property Fund Europe initially targeted a gross asset value in excess of €1bn. However, BNP said that owing to the level of demand from institutional investors it is considering increasing the target size of the fund.
HPF is focused on private regulated assets in key Eurozone countries in three sub-sectors: short, medium and long-stay facilities. BNP said that the fund provides investors with contra-cyclical exposure to the healthcare market with a mixed allocation to hospitals, rehabilitation clinics and medicalised nursing homes.
Equity commitments so far have originated from French, German and Italian pension funds and insurance companies. BNP Paribas REIM said further investor closings are scheduled for H1 and H2 2021 with strong demand from Dutch and Scandinavian investors in addition to the existing geographic base.
Assets acquired and more in pipeline
Since its launch, the fund has acquired six assets located in Germany: a portfolio of five nursing homes of more than 500 beds and approximately 23,500 sq m in total rental area. The acquisitions also included a rehabilitation clinic of just over 20,000 sq m that specialises in the treatment of children and adults suffering from neurological illnesses as well as in treatment following neurological surgery.
The fund is now under exclusivity for properties in Southern Europe, in addition to a strong pipeline in France.
“HPF is a unique investment solution for institutional investors looking for thematic and anti-cyclical exposure to European healthcare. Institutional investors invest in the strategy for its long-term stable cash flows and the regulated assets in key Euro Zone markets,” said head of institutional sales Henri Romnicianu.