Montreux said the care home sector was a growing sector which offers low volatility and little correlation to traditional equity and property markets.
News of the new Montreux care home fund follows by a couple of months the launch of BlueSky Global Investors’ new BlueSky Care Home Fund, which, as reported, is seeking to tap into what its manager, Richard August, says are the compelling market opportunities created by the ageing of the Baby Boom generation. Its 18-month-old Senior Homes Property Fund is already up and running.
Montreaux: ‘high end homes’
In a statement, Montreux said its managers will seek to acquire a portfolio of high-end residential care homes across the UK with high occupancy levels and strong income streams from residents. The fund aims for returns of 10%-12% a year, it said.
The residential and elderly care sector is a unique asset class which has little or nor correlation to the wider property market, according to Montreux. The sector had seen consistent steady returns in recent years and the outlook remained positive, the group said.
Among the factors for optimism in this sector it cited rising UK demographics, the purchase of homes with long-term rental contracts and high occupancy levels, consistent yields above 10%, and minimal bad debts or defaults.
Minimum investment is £10,000 (€15,000, $15,000)
The auditor is Deloitte SA and the investment advice is provided by King Sturge LLP.
