Evli Fund Management Company establishes a new fund investing in care facilities

08.02.2018

Evli Fund Management Company Ltd has established a new fund, Evli Healthcare I Ky, which invests in care facilities. The Fund's strategy is to invest in Finnish nursing and healthcare properties that provide stable cash flow through long-term rental agreements with stable tenancy.

Between 2017 and 2030, the number of people over the age of 65 in Finland is predicted to increase by about 25 percent, which means that demand for care services and properties for care services will increase further. In addition, the social and health services reform (SOTE) will expand the freedom of choice for users of the services, which is believed to increase the demand for private services. The Evli Healthcare I Ky fund responds to these trends by focusing on investments in modern care facilities that provide services through private companies. The fund’s real estate investments are always acquired with rental agreements, whereby the tenant and rental contract risk is kept low.

"With the Evli Healthcare I Ky fund, we can even better respond to the long-standing growth in demand for alternative investment products. The Evli Healthcare I Ky fund seeks stable return based on rental income by making rental agreements extending for at least ten years and with large and established players. In addition, the fund focuses on modern, newly built or refurbished real estate, whereby the additional investment costs can be kept low. The defensive investment strategy also makes it possible to offer an attractive fee structure to investors," says Petteri Nurminen, portfolio manager at Evli Healthcare I Ky fund.

With the establishment of the fund, Evli Fund Management Company aims to offer its real estate investment expertise to an even wider array of investors. In addition to institutional investors, also private individuals can invest in the Evli Healthcare I Ky fund. The minimum investment amount is 100,000 euros.

The first closing of the fund was made with equity of approximately EUR 70 million. The target is an equity amount of more than EUR 100 million by the end of 2018. In addition, the fund's investment capacity is doubled through debt capital. The fund's target size is set at over EUR 200 million.

Evli Healthcare I Ky has acquired its first real estate portfolio

Evli Healthcare I Ky has, on February 8, 2018, purchased a real estate portfolio worth EUR 140.8 million. The portfolio consists of 30 care facilities, located in various parts of Finland, with an average lease term of 12.5 years. The properties are new and modern and the most recent ones have been completed in the summer of 2017.

"The acquired real estate portfolio is definitely the highest quality portfolio that has been on sale in the Finnish market so far, and it gives a solid foundation for Evli Healthcare I Ky's investment business," Evli Healthcare I Ky’s portfolio manager Petteri Nurminen comments on the acquisition of the real estate portfolio.
 

Evli Healthcare I Ky Fund is Evli Fund Management Company’s second real estate fund. The first EAI Residential I Ky was founded in 2015.

 

For more information, please contact:
Petteri Nurminen, portfolio manager, Evli Fund Management Company Ltd, tel. +358 9 4766 9271, petteri.nurminen@evli.com