EQT is pleased to announce that the EQT Real Estate II fund (“EQT Real Estate”) has today launched a joint venture (the “JV”) with AR.CO. Lavori S.C.C. (“Arco Lavori” or “Arco”), a leading Italian construction company with an established track record of delivering high-quality real estate assets in Italy including healthcare facilities. The JV will focus on developing a portfolio of purpose-built, affordable grade-A senior care homes in Northern Italy that will seek to provide the highest level of healthcare and quality living in the country. The JV launches having 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.
It is intended that the JV will have an initial capacity to establish an investment portfolio with a total value in excess of EUR 300 million. The JV’s five initial projects are located in the Lombardy and Emilia Romagna regions, which 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. Over the next ten years, the population group that is over 75 years of age is expected to increase from 11.5 percent to 14.0 percent1. Completed facilities will be let to, and managed by, well-known, high quality operators who will aim to bring a high standard of sustainability and safety to the healthcare home market.
Consistent with other EQT Real Estate transactions, the JV’s assets will be developed with strong sustainability credentials. Where possible, care homes will utilize photovoltaic panels on the roof and benefit from measures aimed at incentivizing the promotion of recycling of waste and rainwater management. The JV’s care homes will also seek to achieve green certifications such as LEED and WELL, as well as following specific ESG principles. In addition, the JV will promote sustainable living practices within the care homes themselves. The operators will implement policies and standard activities related to the procedures against Covid-19 and other possible health risks.
Alessio Lucentini, Managing Director, Investment Advisor and Head of Italy, EQT Real Estate, said, “EQT Real Estate is thrilled to be entering the Italian healthcare market and investing in a sector which is lacking grade-A facilities and is expected to benefit from robust demographic trends in the country. 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. EQT Real Estate looks forward to partnering with the Arco team to realize our shared vision over the coming years.”
Rob Rackind, Partner, Investment Advisor and Head of EQT Real Estate, said, “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. This is another prime example of using EQT’s “local-with-locals” approach to source attractive opportunities in order to invest with thematic trends and we are proud to back a strategy that should deliver significant social impact by providing defensive, socially responsible assets to the regions of Italy most in need.”Emiliano Battistini, CEO of Arco Lavori, said, “We look forward to partnering with EQT Real Estate to deliver a high-quality portfolio of purpose-built senior care homes in Italy. There is a growing undersupply of affordable grade-A care home facilities in Italy and this trend is expected to continue during the coming years. The combination of EQT Real Estate’s pan-European expertise and our local reputation and know-how is expected to create a much-needed product for an important and growing part of Italy’s population.”
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EQT is a purpose-driven global investment organization with more than EUR 84 billion in raised capital and over EUR 52 billion in assets under management across 17 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
About EQT Real Estate
EQT Real Estate, part of EQT Partners and Investment Advisor to EQT managed real estate funds, seeks direct and indirect controlling interests in value-add real estate assets, portfolios, operating companies and platforms across primary cities in the UK and Europe that offer significant potential for value creation through repositioning, development / redevelopment, refurbishment and active asset management. The EQT Real Estate Advisory Team comprises 24 experienced Investment Advisory Professionals working out of EQT’s offices in London, Madrid, Milan, Paris and Stockholm. The Investment Advisory Team, which has access to the full EQT network including 11 European offices and more than 500 EQT Advisors, has experience analyzing and investing across the pan-European real estate market and has, collectively, advised on over 130 real estate projects in multiple asset classes across Europe.
More info: www.eqtgroup.com
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About Arco Lavori
Founded in 1999, Arco Lavori is a cooperative construction company focused on general construction, facility management, energy and healthcare sectors. Arco is headquartered in Ravenna, in the Emilia Romagna region, and has more than 400 partner companies and an order portfolio of approximately EUR 550 million as of March 2021. With a well-established track record in the healthcare sector across Italy, Arco’s principal focus is aimed at improving the economic and social conditions of partner companies while delivering innovative products. Arco has created an unrivalled property platform and an integrated solution to its partners by sourcing sites, bringing together construction resources, and managing all stages throughout the planning and development process. In 2020, Arco Lavori had a turnover of approximately EUR 200 million.
More info: www.arcolavori.com