BNP Paribas REIM's European healthcare fund ahead of initial fundraising targets
BNP Paribas REIM Healthcare Property Fund Europe (HPF) has secured equity commitments of EUR340 million, giving it an investment capacity in excess of EUR500 million.
The current group of investors consists of French, German and Italian pension funds & insurance companies. Further investor closings are scheduled for H1 and H2 2021 with strong demand from Dutch and Scandinavian investors in addition to the existing LP geographic base.
HPF focuses on private regulated assets in three healthcare sub-sectors (short, medium & long-stay facilities) in key Eurozone countries. The fund offers anti-cyclical exposure to the healthcare market with a mixed allocation to hospitals, rehabilitation clinics and nursing homes.
Since its launch, the fund has closed on six assets located in Germany: a portfolio of five nursing homes of more than 500 beds and approximatively 23,500 sqm in total rental area and a rehabilitation clinic of just over 20,000 sqm in total rental area, specialised in the treatment of children and adults suffering from neurological illnesses as well as in treatment following neurological surgery.
The fund is now under exclusivity for properties in Southern Europe, in addition to its strong pipeline in France.
Structured as a Core Open-Ended Luxembourg SICAV, the fund initially targeted a Gross Asset Value in excess of EUR1 billion. Given institutional investor demand for HPF, in combination with the proven ability of the manager to secure best-in-class assets, BNP Paribas REIM is now contemplating to increase its target fund size for this strategy.
“Our 10-year track-record in the healthcare sector is highly regarded. HPF is a unique investment solution for institutional investors looking for thematic and anti-cyclical exposure to European Healthcare. Institutional investors invest in the strategy for its long-term stable cash flows and the regulated assets in key Euro Zone markets,” says Henri Romnicianu, Head of Institutional Sales.
“HPF Europe has built a strong seed portfolio with properties secured in Germany, Spain & Italy. Our transaction managers are analysing a deep pipeline of healthcare opportunities and we are strongly positioned to deploy investor capital,” says Paul Darribère, Fund Advisor of HPF Europe.