EQT Real Estate and Arco Lavori launch €300 million JV

EQT Real Estate and Italian construction company Arco Lavori have launched a €300 million joint venture to create affordable senior care homes in northern Italy.

The joint venture constitutes EQT Real Estate's first investment in Italy and combines its thematic focus on "beds and sheds" in primary European markets with a social impact strategy underpinned by EQT's sustainability credentials.

The JV has secured five initial sites in the Lombardy and Emilia Romagna regions, providing an aggregate of 1,010 beds, and the first two senior care homes are expected to be delivered by late 2022 and early 2023. During the next 10 years, the proportion of over 75s are expected to increase from 11.5 percent to 14 percent.

Where possible, care homes will use PV roof panels and include recycling and rainwater management measures, targeting green certifications such as LEED and WELL, and follow specific ESG principles. 

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 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: "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."

EQT Real Estate has also signed a 16-year pre-lease with AcadeMedia for a 14.1k sqm development, Campus Södermalm, in Stockholm. On completion of the heavy refurbishment in H2 2022, it will house four Upper Secondary Schools.