Swedish investment firm EQT has launched a €300m (US$353.6m) joint venture with Italian construction company Arco Lavori to develop a portfolio of senior care homes in Northern Italy.
The JV has already secured five initial sites with the ability to provide an aggregate of 1,010 beds. The first two senior care homes are expected to be delivered by late 2022 and in the beginning of 2023.
“This joint venture with Arco marks an exciting entrance into Italy for EQT Real Estate as it represents the first transaction in this market since the business line was established in 2015,” said Rob Rackind, head of EQT Real Estate.
The JV’s five initial projects are located in the Lombardy and Emilia Romagna regions, which, EQT said, are particularly in need of senior care facilities due to the supply-demand imbalance and low provision rate of care home beds for senior citizens driven by Italy’s growing elderly population.
According to Eurostat, over the next decade, the population group that is over 75 years old is expected to increase from 11.5% to 14%.
“In addition to the initial five sites, we are currently evaluating a growing pipeline of projects, mainly in Northern Italy, to build a large scale, resilient and downside-protected portfolio,” said Alessio Lucentini, head of Italy, EQT Real Estate.