Investor extends reach into specialist residential care centres
NEW YORK: An international investor is set to extend its reach into specialist residential care centres.
Aedifica will invest approx. SEK 530 million in the acquisition of a portfolio of 16 specialist residential care centres. All properties were designed and developed by developer Valene.
Stefaan Gielens, CEO of Aedifica, commented: “Aedifica is pleased to announce its first portfolio acquisition in Sweden. We will acquire 16 brand-new residential care properties for persons with disabilities, 2 of which are currently still under construction and will be completed in the course of 2022. Thanks to this transaction, we can strengthen our position in the Swedish market, increasing our portfolio almost fourfold from €19 million to approx. €72 million. This step will not only enhance the efficiency of our Swedish team, but it will also increase the visibility of Hoivatilat AB in the Swedish market allowing the team to pursue a growth strategy through own developments. We look forward to continuing to invest in and develop futureproof healthcare real estate with our Swedish Hoivatilat team.”
The portfolio includes 14 purpose-built care properties built between 2012 and 2021 with an average age of 3 years, and 2 care properties under construction that are expected to be completed in 2022. The sites have excellent locations in 9 different cities in Southern and Eastern Sweden, with over 70% of rent being generated in the Stockholm region (Uppsala, Vallentuna, Örebro, Österåker and Enköping).
The buildings are small-scale residential care centres (so-called ‘LSSboende’) that are designed specifically to provide specialist care and housing to persons with special needs that are entitled to such care and housing under the Swedish Act on Support and Service for Persons with Certain Functional Impairments (LSS Act). The portfolio has a total capacity of 114 residents.
Each building includes 6 to 12 one-bedroom apartments of approx. 45 m² and common spaces. Since these common spaces can easily be transformed into additional apartments, and given the excellent location of the properties, these residential care centres offer easy alternative use.
Maria Frid, CEO of Hoivatilat AB, adding: “All 16 properties are purpose-built specialist residential care centres that were tailored to suit the needs of persons with disabilities. The sites are operated by a diversified pool of experienced private and non-profit operators. This acquisition has an important strategic value, as it gives us the opportunity to further develop relationships with new operators and municipalities.”