Target Information

RiverRock is pleased to announce its acquisition of a nursing home in Guidonia Montecelio (RM) from Credsec 1 Immobiliare S.r.l. This healthcare facility spans 80,000 sqm and offers 480 beds, providing diverse healthcare services, including long-term care, mental health services, hospice care, and dialysis. It is fully accredited by the Lazio region and is strategically located to the northeast of Rome.

The nursing home’s scope of services and operational capabilities make it a valuable asset in the healthcare sector, supporting the increasing demand for elderly care and related medical support in Italy. The facility is positioned to deliver essential healthcare services while maintaining high standards of patient care.

Industry Overview

The healthcare industry in Italy is robust, driven by an aging population and growing demand for healthcare services. With approximately 23% of Italians projected to be over the age of 65 by 2030, the necessity for long-term care facilities, mental health support, and other healthcare services is expected to rise significantly. This demographic shift creates both challenges and opportunities within the sector.

Moreover, the Italian national health service provides a reliable funding source for healthcare operations, establishing long-term contracts with providers. This framework not only ensures stability in revenue generation but also enhances the attractiveness of healthcare investments, as operators can rely on baseline funding from government sources.

In recent years, the focus on improving healthcare infrastructure has intensified, particularly in light of the pandemic, leading to increased investments in healthcare facilities. This momentum suggests a positive outlook for healthcare operators as they expand their capabilities to meet surging demand.

Furthermore, the Italian government's efforts to modernize healthcare delivery systems and enhance efficiency through public-private partnerships will continue to shape the industry landscape, potentially leading to more lucrative opportunities for investors in the sector.

Rationale Behind the Deal

This acquisition aligns with RiverRock's strategy to invest in resilient, cash-generating infrastructure assets. The existing long-term lease agreement with Italian Hospital Group S.p.A. ensures a steady income stream, underpinning the investment’s economic viability. Moreover, this asset is expected to yield attractive, long-term cash flows, contributing to the portfolio's performance amidst market fluctuations.

Furthermore, acquiring a facility in a strategic location enhances RiverRock's investment portfolio, particularly in the healthcare sector, which remains essential and less susceptible to economic downturns compared to other industries.

Investor Information

RiverRock European Capital Partners LLP is an alternative asset management firm focused on private markets and real assets. With its headquarters in London and additional offices in Paris, Milan, and Madrid, RiverRock is regulated by the Financial Conduct Authority in the UK. The company emphasizes investments in core infrastructure, particularly in Euro-denominated assets across Western Europe.

RiverRock's Brownfield Infrastructure Fund 1 (RBIF1) manages €195.5 million and specializes in equity investments in small to medium-sized operational infrastructure assets. Following this transaction, RBIF1 will be nearing full investment capacity, demonstrating RiverRock's commitment to driving growth through strategic investments in essential sectors.

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This acquisition by RiverRock is poised to be a solid investment given the underlying growth trends in the healthcare sector within Italy. The long-term lease with a reputable operator like Italian Hospital Group enhances security and predictability of cash flows, which is crucial for long-term investors.

Additionally, the strategic location of the facility near Rome provides access to a significant population base that will require ongoing healthcare services, further solidifying the investment's attractiveness. The diversification of services available within the facility also positions it well to capture various segments of the healthcare market.

Given these factors, along with the UK-based RiverRock's established expertise in infrastructure investment and management, this acquisition not only aligns with their investment philosophy but also represents an opportunity to enhance shareholder value through stable and resilient returns.

Overall, RiverRock's acquisition of this nursing home aligns with its strategic goals while also addressing pressing healthcare needs in Italy, making it a prudent investment choice that is likely to yield favorable results for its stakeholders.

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