Swedish nursing home investor Hemsö adds €185m in Germany

Swedish social infrastructure investor Hemsö Fastighets AB continued its expansionary path in Germany last year, adding a further €185m worth of nursing homes and educational institutions, to bring its German assets under management to about €640m.

Over the year it bought four nursing homes and two further nursing home project developments, bringing its stock of individual homes up to 42, with more than 4,000 beds and more than 230 assisted-living apartments. It also added an adult education centre (Volkshochschule) in Dortmund and the LANUV (Landesamt für Natur, Umwelt und Verbraucherschutz) learning centre in Duisburg.

According to Jens Nagel, Hemsö’s German boss, there’ll be further investment this year, both in the managed-care sector and in educational establishments, despite the recent run-up in prices. Particularly in its main segment of nursing homes, he said, the company’s experience gave it an edge in being flexible when buying. “In addition to complete portfolios we’re also looking to buy assets in need of refurbishment, development, and even land on which we can build nursing homes along with a strategic partner,” he said.

Since entering the market in 2011 by buying a portfolio with 17 nursing home, the company’s 44 assets are now spread across nine states in Germany. “For us it’s very important to avoid ‘lump risk’ by diversifying our portfolio as much as possible, both geographically across the country and in terms of our tenant mix, between private and municipal clients”, said Nagel. The parent company in Sweden, which is majority-owned by Sweden’s third national pension fund, has SEK 25bn of assets under management in Sweden, Finland and Germany.