Northern Horizon buys prime healthcare portfolio in Finland

Northern Horizon yesterday announced it has acquired a portfolio of 15 prime healthcare properties in Finland from eQ, the country’s largest private social infrastructure owner and developer.

annika Kankare, Investment Director Finland, Northern Horizon

The specialised healthcare real estate investor paid around €75 million to buy the portfolio, regarded as some of the highest quality care home assets ever sold in Finland, for its fourth healthcare fund, Aged Care IV.

”This deal aligns perfectly with our investment strategy,” said Jannika Kankare, investment director Finland, Northern Horizon. “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 at favourable terms.”

The portfolio consists of 15 assets with 450 care beds, 100% 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.

The buildings have a total lettable area of about 20,000 sq m. Most of the assets are located in the triangle between Helsinki, Turku and Tampere which are the most important cities in Finland. The rest are located in major university cities.

One of the care homes in Finland just acquired by Northern Horizon

The purchase represents a milestone, Northern Horizon said, 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 its Finnish assets is 40,000 sq m. 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 exceeding 15 years.

“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,” said Kasper Wehner, co-fund manager, Aged Care Fund IV, Northern Horizon. “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.”

The independent real asset manager has acquired more than 140 care homes across the Nordics since 2007. The Nordic Aged Care Fund IV, which was launched in 2020, has a strategy to acquire modern aged care assets across the Nordics which are let on long-term leases to strong private or public sector operators.