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IIF expands into healthcare with new vehicle

The fund backed by AMP Capital and Irish Life Investment Managers has secured the acquisition of two centres in a deal wholly backed by equity.

The Irish Infrastructure Fund has broadened its portfolio with the acquisition of two primary care health centres.

The vehicle launched by AMP Capital and Irish Life Investment Managers in 2012 has established a new holding company – Valley Healthcare – to drive its ambitions in the sector.

Valley Healthcare’s first investments are two operational care centres in Irish towns Wicklow and Mayo backed by a 25-year lease from Irish government body Health Service Executive. IIF said further centres are expected to be added to Valley Healthcare’s portfolio over time. The fund also noted that the deals have been completed through 100 percent equity funding, with an option to add debt at a later date.

AMP Capital declined to disclose the purchase price of the deal.

The two care centres will be operated by Irish healthcare company Glencar, whose chairman Brendan Drumm said that “major investment in new infrastructure is required” to support healthcare changes which are seeing more people treated in care centres rather than admitted to hospitals.

“At a time when demographics are shifting towards an ageing population, we see a real opportunity for private sector investment to play a key role in further developing healthcare in Ireland,” added Philip Doyle, principal at the IIF. “We believe we are in a unique competitive position to provide high-quality essential healthcare services to communities across Ireland while also delivering strong returns for IIF investors.”

The open-ended IIF has previously invested in a portfolio of wind farms, telecoms towers and convention centres. Having raised about €400 million since its launch, it is targeting a total size of €1 billion and IRRs of between 12 and 15 percent.