Nordic real estate investor NREP’s open-ended fund, NREP Income+ (NIP), has acquired a portfolio of elderly care homes from Swedish real estate developer Fastighets AB Stenvalvet for €200 million.
The care home portfolio is diversified across ten different municipalities of Sweden, and comprises almost 500 senior living apartments leased to a range of public and private operators, including reputable specialists such as Vardaga, Attendo, Förenade Care and Silverlife.
The portfolio is fully operational and leased, with less than one percent vacancy, while NREP has identified clear opportunities to enhance its quality and value through a number of sustainability initiatives that will reduce the properties’ climate footprint, alongside a comprehensive asset management programme that includes a series of refurbishments and extension projects, catering to the robust demand for increased provisions of modern and fit-for-purpose elderly accommodation.
Jani Nokkanen, CIO and Partner at NREP, said: “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, with the world’s aged population continuing to expand presenting an urgent need for suitable housing facilities. NREP views this fast growing and demographically supported sector as an attractive area that appeals on account of its high impact potential alongside the ability to effectively apply our market-leading sustainability practices.”
NREP said this transaction expands its care home platform Altura to over €1 billion of assets under management.
Dorotea Stellmach, Head of Sweden of Altura, commented: “We look forward to integrating this portfolio into the wider Altura platform and enhancing its performance with a focus on sustainability and building productive relationships with the underlying tenants, operators and municipalities. NREP’s value-based philosophy extends beyond care homes, with similarly enriching potential offered through investment in other socially important functions, such as schools, where the business is well placed to capitalise.”
The share of the Nordic population over 80 years of age is forecast to grow by 50% over the next ten years, leading to an increase in the demand for care home apartments, according to NREP.
Altura was launched by NREP in 2018 and serves as a dedicated owner and developer of care homes across the Nordic region.
NIP is an open-ended core-plus fund aimed at long-term investments into modern logistics facilities, middle-income residential, offices and care homes.