Asset manager Northern Horizon is expanding its focus on the care home sector in the Nordic region with another acquisition of almost 40,000 square metres of private care homes across Denmark.
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The portfolio comprises six projects, of which three are under construction, two are in operation and one is still on the drawing board. The portfolio is sold by Nrep and is the largest care home transaction on the Danish market to date. We acted as advisers to the buyer in the transaction. The portfolio projects include high-quality assets on prime locations in Kolding, Odense, Sorø, Greve, Holte and Helsinge. Upon completion, the total portfolio is expected to comprise around 450 private care home units consisting of 428 flats, 23 townhouses and two day-care centres to help accommodate the growing demand for modern community-oriented housing for seniors. New construction will be built to the highest sustainability standards, and the existing properties will be renovated to achieve DGNB certification.
More private operators invest in social infrastructure
The steadily growing ageing population creates a high demand for care homes. Compared to previous generations, today's seniors have more resources and different expectations for their retirement, which also include their housing needs and preferences.
We see a general, increased degree of privatization of the healthcare sector in Denmark. But also in the property sector, we are currently seeing a significantly greater interest in investments in social infrastructure from private operators.
Stig Plon Kjeldsen, partner and Head of Research & Valuation
- In our neighbouring countries such as Sweden and the UK, the market for private care home operators is more mature and well-developed than in Denmark. However, in the last few years, we have seen more private operators targeting their investments directly towards the care home sector. Existing care homes are becoming increasingly outdated, while the number of elderly people will grow significantly in the future. Therefore, it is a positive development that the private operators also consider it an interesting investment case to develop buildings that actively contribute to creating a more responsible property industry and at the same time help meet the steadily growing need for care home properties in Denmark, says Stig Plon Kjeldsen.
We are very pleased to have assisted Northern Horizon in their acquisition of this significant portfolio. Together with Bruun & Hjejle, EY and VITA Engineers, we have been part of the advisory team on the buyer side.
"We congratulate the parties on the transaction and thank them for the trust and the good dialogue between the parties," concludes Stig Plon Kjeldsen.
