ING Real Estate has launched an €800 million ($1.2 billion) fund, ING European Healthcare Property Fund, targeting healthcare properties throughout Europe.
The ING European Healthcare Property Fund – led by fund manager Wietse de Vries and portfolio manager Ingrid Hulshoff – will target cure, care and commercial healthcare assets in Germany, France and the Netherlands. The fund could also invest in other European countries including Italy, Spain, Austria, Belgium and Sweden.
Although expected investment returns from healthcare real estate are in line with other core real estate strategies the “correlation between healthcare and economic developments is virtually non-existent,” De Vries said in a statement today. Healthcare assets are an “excellent diversifier of risk” with “excellent inflation-hedging potential,” he added.
Much of healthcare real estate in continental western Europe – valued at around €400 billion – is still owner-occupied, according to the firm, although with changes in legislation and government funding “transaction levels are accelerating.”
Aging populations in European countries and continuing demand for healthcare also offer investors opportunities for “attractive risk-adjusted investment returns,” it said.
The fund targets an IRR of eight to nine percent.