AIP to capitalise on aging population with nursing home fund

Asia Investment Partners, a Tokyo and Denver-based private equity firm which focuses on “socially responsible investments” is to launch a nursing homes fund for Japan which would acquire ¥75 billion of properties over the next three years.

Tokyo and Denver-based Asia Investment Partners, is to launch a fund aimed at investing in up to $878 million of nursing homes over the next three years.

The firm, which was founded in 1998, is planning to raise between ¥15 billion (€137 million; $175 million) and ¥30 billion for the vehicle. It is expected to start marketing the vehicle to institutional investors in January and will also seek debt funding for its investments.

In a report by Nikkei, AIP stated it would invest in land and buildings but would seek to appoint a “specialized firm” to manage the assets while its staff focused on the operational aspect of the nursing facilities.

AIP said the investment potential for nursing homes investment in Japan would grow as the country’s population aged. 

According to a report by the BBC, Japan’s latest census report showed Japan’s population was 126.92 million, up by 1.35 million, or 1.1 percent from the last survey five years ago. This growth, it said, was a “significant drop” from Japan’s previous record low of 1.6 percent recorded in 1995.

Japan’s elderly population – those over 65 years old – is also at a record level at 22 million people meaning that aprximately one in six Japanese people is elderly.

AIP also invests in corporate debt and equity in addition to hard asset and secured debt real estate investments. In addition to healthcare assets, the firm also invests in contaminated urban land where it financing remediation programs to improve value.