Financing our care homes
At Exsos we invest our own money in our projects. We see this investment as as a long term and sensible handling of the owners’ capital,and an opportunity for us to take responsibility for the entire value chain from development to leasing, which in turn allows us to set the foundation for a long and constructive collaboration with the operator.
Structuring and financing
Every single one of our care home projects is placed in an individual real estate company based in the country where the property is developed. Financing is handled with a balanced distribution of equity and loan capital, often in collaboration with local and regional banks.
Being trusted with foreign funds is a responsibility we take very seriously.
We do our utmost to ensure the future cash flow of properties in order for these funds to be returned as agreed.
Our projects are always based on a thorough analysis of needs and competition. The financing is structured in an iterative process between:
- Leasing income – directly related to the residents and the public sector’s willingness and ability to pay.
- Project costs – closely related to the chosen care and construction concept.
- Financing parameters – related to the creditworthiness of the operator, the project and ourselves as investors.
Leasing of our care homes
We seek collaboration with progressive operators who share our passion for taking the senior care sector to the next level.
The good work relationship
As the operator you participate in the project from start to finish. This ensures your influence on the planning process, the material selection and general functionality within the agreed concept of operation.
To ensure high quality and lowest possible maintenance costs we do our best to meet the financial expectations of all parties involved:
- Resident: the need for a good and affordable care in welcoming and affordable homes.
- Operator: the need to be able to offer a good work environment in attractive surroundings combined with a reasonable profit margin.
- Investors and banks: the need for a reasonable return of investment combined with a long-term value growth with the lowest possible risk.
Once the construction phase is over, the facilities, incl. fixtures, are passed on to the operator who can then start furnishing. Exsos can help with the financing of furniture and equipment, preferably in the form of a cash grant.
We offer a 25-year lease contract with the possibility of a 5-year extension. A purchase option is also possible.
We are the professional partner during the leasing period, and we strive to ensure that the physical facilities remain attractive for the residents and employees.
Ownership and sale
At Exsos, we regard the ownership of our care homes as a long-term conservative investment with a relatively safe return. Therefore, we also follow our projects from start to finish and take a great deal of responsibility for the entire value chain from project development to renting out the constructed properties.
That being said, ownership of everything we build is not a must for us. Insofar as healthy framework conditions are present, we are prepared to sell new projects already during the project development phase. We develop, project and construct the properties and transfer the finished building to the buyer, e.g. through a forward deal.