JLL advises Northern Horizon on the second largest ever healthcare transaction in Finland

JLL advised Northern Horizon on its exit from its Healthcare II fund to a fund managed by Evli.

helmikuu 08, 2018

The transaction values the fund's 30-asset Finnish portfolio at €140.8 million. The exit of Healthcare II, a fund launched in December 2013, delivers a net IRR of approximately 29% and an equity multiple of 1.7x to its investors.

Jussi Rouhento, Fund Manager of the Healthcare II fund and Northern Horizon's Head of Finland, commented on the deal: "The exit completes the story of one of the highest quality healthcare real estate portfolios in Finland. The portfolio consists of new assets 100% let on leases with an average remaining term exceeding 12 years. By exiting now, we were able to achieve a 50% capital gain on the equity invested. This is why we feel that it was in the investors' best interest to exit now."

Andreas Michelsson, Co-Fund Manager of Healthcare II, adds: "In terms of net IRR, the fund has surpassed its original goal by a factor of three while delivering the targeted equity multiple in less than half the expected time. From our point of view, the portfolio is currently at its peak and there was no more work for us to be done to further enhance the value."

Michael Schönach, Group CEO of Northern Horizon and Chairman of Healthcare II, says: "This is our second care home fund exit and it once more demonstrates our team's ability to deliver exceptional risk-adjusted returns. The portfolio attracted strong interest from a diverse domestic and international buyer universe, highlighting the demand for the predictable and uncorrelated cash flows from this demographically driven real estate asset class. We remain committed to our on-the-ground care home portfolio assembly strategy through our third specialised fund, the Nordic Aged Care Fund, which invests in our entire Nordic home market."

Christian Hohenthal, Head of Capital Markets at JLL Finland, said: "We are extremely pleased to facilitate one of the largest transaction in the Finnish healthcare segment which follows the success story of the pioneering Northern Horizon Healthcare I fund sold in 2016. There is a very good momentum in the Finnish investment market, particularly for large scale platform transactions, attracting strong investor interest as underlined by this significant portfolio deal."

JLL acted as Northern Horizon's sole commercial advisor on the structured sales process. Krogerus provided legal advice.