Real estate asset management firm HHR Asset Management has completed the establishment of a fund for nursing and elderly care facilities. The fund's investment targets are Care Home Songchu Forest Branch located in Jangheung-myeon, Yangju-si, Gyeonggi-do, and CareDoc Care Home Baegot New City Branch located in Baegot New City, Siheung-si, Gyeonggi-do.
The main investor in the fund is the global investment firm Invesco. Invesco plans to actively expand its portfolio through strategic investments in the domestic senior industry in collaboration with HHR Asset Management, responding to the increasing demand due to the aging society.
Prior to this, Invesco established ‘Care Operation,’ a senior specialized operator, jointly with CareDoc, a senior total care specialist company, to enter the domestic senior housing market. Care Operation will participate in this investment as the operating corporation and responsible lessee of the senior care facilities, ensuring stable and professional management.
This is the first time that a fund, rather than insurance companies' own demand, has purchased senior care-related assets together with investment institutions and specialized operators. Investment in nursing and elderly care facilities requires meticulous review of various laws, tax issues, and physical requirements, including the Elderly Welfare Act, unlike typical commercial facilities such as offices or logistics centers. Securing partners for stable operation is also essential. In this regard, the successful entry of HHR Asset Management, Invesco, and CareDoc into the senior housing investment market holds significant meaning.
As the society approaches a super-aged stage, senior housing is gaining attention as a new sector in the real estate investment market, with various market participants exploring their own strategies. Based on strategic partnerships with Invesco and CareDoc, HHR Asset Management plans to continuously expand its senior asset portfolio and lead the market by focusing on discovering new assets through development and repurposing. In particular, future developed assets will incorporate CareDoc’s next-generation senior housing design and content to continuously create differentiated senior living spaces.
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