New health care fund launched by Swiss Life targeting €1bn

Swiss Life Asset Managers has launched a new healthcare fund as it deepens its commitment to the managed care and senior housing sector, with its initial focus on the French and German markets.

It has seeded the new fund with €246m of assets, to which Swiss Life itself has committed more than €180m as an investor. This includes 16 seniors housing homes in Germany and six seniors housing assets in France. The team has also secured exclusivity on the possible acquisition of a seniors housing asset in Milan, Italy, plus a seventh seniors housing asset in France.

In an update, the company with €90bn of real estate assets under management, said its European Healthcare fund had been designed to respond to structural demand for investment in the European healthcare sector in a 'locally targeted way'. The fund will focus on core and core-plus assets and is targeting €600m of equity, giving it firepower to invest up to €1bn. The fund is being led by Valérie Maréchal, head of residential and care at Swiss Life Asset Managers France.

An ageing population in Europe is increasing the burden on healthcare infrastructure, while the dependence of elderly people is creating a shortage of adequate housing, the company said. Although the coronavirus pandemic appears to have brought about a shift in priorities, public finances are strained and there is a dearth of public commitments to healthcare infrastructure.

The fund will invest in geographically diversified assets, with 30% of assets in Germany, 30% in France and 40% in the rest of Europe – with an initial focus on opportunities in Spain and Italy. In terms of sector breakdown, the fund plans to allocate about a third of investments to nursing homes and a further third to senior housing assets, while the rest of the portfolio may be invested in other healthcare-related assets.

Maréchal said, “In 2050, there will be one person over 60 for every two of working age. This presents a substantial challenge for European societies, which we want to help solve. Our aim at Swiss Life is to create a continuity care plan, which begins at home and helps individuals live a longer self-determined life.”