Nordic property investor NREP has paid about €200 million for a portfolio of 13 elderly care homes in Sweden.
The facilities have been bought on behalf of the NREP Income+ fund and were acquired from Swedish property developer and manager Fastighets AB Stenvalvet.
NREP said the portfolio increases its care home platform Altura’s assets under management to over €1 billion and “raises its exposure to demographically-driven projects that make a tangible difference to society.”
The care homes are spread across ten different municipalities, and provide about 500 senior living apartments leased to a range of public and private operators. The portfolio is fully operational and leased, with less than 1% vacancy.
NREP said it has identified opportunities to enhance the quality and value of the homes through a number of sustainability initiatives that will reduce the properties’ climate footprint. An asset management programme is planned that includes refurbishments and extensions.
“We remain unwaveringly consistent in our customer-centric approach to investment, and consider the care sector to present a particularly attractive opportunity to deliver solutions to a clear societal problem,” said NREP CIO Jani Nokkanen.
The share of the Nordic population over 80 years of age is forecast to grow by 50% over the next ten years.
The NREP Income+ fund is an open-ended core-plus fund aimed at long-term investments into modern logistics facilities, middle-income residential, offices as well as care homes.
NREP was advised on this transaction by Real Advokatbyrå, Svalner, Niras and RED Management.