Nrep, Urban Partners’ real estate investor and developer, has entered into a strategic joint venture focused on the Finnish care home market with Plus Hoivakiinteistöt, a local company which specialises in care home operations.
The joint venture will cover the development and operation of the care homes, with €400 million allocated for investment over the next three years. The development of an initial eleven care homes – valued at €70 million – is scheduled to begin this year. Negotiations are ongoing for more than €100 million worth of further projects.
Leveraging Nrep’s investment and development expertise and Plus Hoivakiinteistöt’s operational strength, the ambition is to build Finland’s highest quality care home portfolio. All assets must benefit from strong transport connections and be within, or in the vicinity of, growth centres. Solutions such as geothermal heat, solar panels and lower-emission building materials will be utilised in the portfolio’s construction, aligning with NREP’s sustainable investment principles.
The strategy is supported by demographic tailwinds, including Finland’s ageing population, with the proportion of people aged over 80 forecast to double by 2040. MDI, a regional research consultancy, estimates that 200 medium-sized care homes are required to fill current supply shortfalls, while much of the existing stock, built pre-1990, requires significant upgrades, underscoring the sector’s need for institutional investment.
If the full scope of the joint venture’s investment pipelines is realised, it will represent Nrep’s largest commitment to the Finnish care home market to date.
Joonas Lemström, Head of Nrep, Finland, said: “The Finnish care home market has suffered from a lack of investment in recent years, which has created significant pent-up demand, something which has only been exacerbated by the country’s ageing population. By combining Nrep’s strengths as a long-term sustainability-focused investor and developer with Plus Hoivakiinteistöt’s operational expertise and deep knowledge of the local market, we are well positioned to deploy the capital and generate strong returns for our investors.”
Olli Lieskivi, CEO of Plus Hoivakiinteistöt, said: “The need for new, modern elderly homes is strongly reflected in our project portfolio. The joint venture combines our and Nrep’s expertise, resources and experience in implementing high-quality care properties in a way that better serves our partners and, ultimately, customers in need of care services.”
