AXA IM Alts has acquired a portfolio of 15 nursing homes, located across Tokyo, Osaka and Aichi in Japan, for €156m (¥21.9bn), including acquisition costs. The deal is its first transaction in the sector in Japan and has been made on behalf of AXA IM Alts clients.
The portfolio, which consists of more than 800 beds across 15 assets, 14 of which have been constructed after 2013, is let to five established operators, with a weighted unexpired average lease term of 19 years.
AXA IM Alts says the Japanese care home sector is characterised by a shortage of good quality stock, with the demand supply imbalance expected to widen as the number of over 65s in the country is forecast to grow by 20% over the next 20 years.
Laurent Jacquemin, head of Asia-Pacific, real assets at AXA IM Alts, said: “This is a rare opportunity to acquire a modern and diversified portfolio of care home assets with an attractive trading history, in a fast growing but still highly fragmented use class.
“Establishing long-term relationships with leading operators will allow us to quickly scale our platform, in a sector we view as highly defensive and benefitting from the tailwinds of compelling long-term demand supply dynamics.”
