Northern Horizon purchases prime Finnish healthcare portfolio for €75m

Real asset manager Northern Horizon has picked up a portfolio of 15 healthcare properties for €75 mln in Finland for its fourth healthcare fund, Aged Care IV.

The portfolio was acquired from eQ, a leading Finnish private social infrastructure owner and developer.

Considered one of the highest quality care home portfolios ever sold in Finland, it consists of 15 assets with 450 care beds, with a total lettable area of 20,000 m2. All are leased on CPI-indexed contracts with an average remaining term of over 13 years.

The assets are located in major Finnish cities, including Helsinki, Turku, Tampere, and university towns, benefiting from strong tenant demand.

They include the hybrid property in Mellunmäki Helsinki, which features 46 aged-care beds, 16 senior housing units, and a grocery store. It boasts a WAULT of 15 years with Attendo and a BREEAM Very Good certification.

Jannika Kankare, investment director in Finland, said: ‘We are very satisfied with this deal which aligns perfectly with our investment strategy. 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 with favorable terms.’

Kasper Wehner, co-fund manager for the fund, added: ‘We had the final close for Aged Care IV just one year ago. 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. 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 portfolio is fully occupied by a diverse range of tenants, including Attendo, Mehiläinen, Esperi Care, and several public tenants, resulting in a blended WAULT of over 15 years.

The properties, constructed between 2016 and 2023, are either certified or on track to be certified BREEAM Very Good.

Krogerus provided legal counsel to Northern Horizon for this transaction.

With this latest acquisition, Northern Horizon has finalized its Finnish sub-portfolio, which now comprises 27 assets with a total lettable area of 40,000 m2.

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