Paref Gestion launches healthcare property fund targeting 8% returns
What's the deal? Paref GestionDealroom has a profile for this one. Try Dealroom → has launched Paref Vitae Value Add Fund I, a professional real estate fund investing in healthcare, care, and human and animal well-being. It targets France primarily, with an opening to high-growth European markets, and is reserved for professional investors.
What's the endgame? The fund pursues a "Value Add" strategy: buying undervalued or underused assets, renovating them, and signing long-term leases with leading operators. That sets it apart from most healthcare property funds, which favour a lower-risk "Core" approach.
Where's the money going? It prioritises four asset types: managed senior living residences, medical centres, wellness and health centres, and animal health facilities. France will make up 60% to 85% of the portfolio, with the rest in Germany, Spain, and Italy.
Why now? The firm points to long-term demographic shifts. By 2070, France will have 20 million people over 65, sustaining demand for senior housing and care.
Pet ownership adds another driver. In Europe, 50% of households own a pet, and France's animal health market will reach €5.9bn in 2025, up 60% in a decade, with expected annual growth of 5.7% through 2034.
What could go wrong? The fund targets a non-guaranteed annual IRR of 8% but warns of capital-loss risk and no liquidity for seven years, extendable by two.
The signal: Paref is betting that ageing, undervalued healthcare assets can be repositioned for competitive returns as demographic demand builds. The strategy leans on the group's healthcare expertise, drawn from a mandate it has run since 2024 for one of Asia's largest listed healthcare real estate funds.
Image credit: o palsson
