Northern Horizon expands healthcare portfolio in Finland

Northern Horizon continues to expand its healthcare portfolio in Finland with the acquisition of a portfolio of two healthcare properties purchased from eQ Community Properties Fund in an all-equity deal.

The specialised healthcare asset manager in the Nordics has acquired the portfolio for its new evergreen healthcare fund, Aged Care and Social Infrastructure Fund. The Finnish transaction is the first addition to the new evergreen vehicle, which has current assets under management of close to €700m.

“We are very satisfied with this deal, which aligns perfectly with our investment strategy”, said Jussi Rouhento, Fund Manager & Head of Finland, Northern Horizon. “We have a significant pipeline, and we continue to look for opportunities.”

The deal includes two properties in Espoo and Lahti with a total lettable area of approximately 3,500 sq m. The Espoo asset is located in the Helsinki capital region and was completed in 2018. The second asset, located in Lahti, a regional hub among the largest growth centres in Finland, was completed in 2023.

The properties meet the high sustainability requirements set for the Fund’s portfolio, and both assets are operated by Attendo, the 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.

“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”, Rouhento said.

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, 100% occupied by “a strong tenant mix”, the group said.

“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.”