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Orion Partners to launch $250m Japan care homes fund

  • Andrew Woodman
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Hong Kong-headquartered Orion Partners, formerly known as Ajia Partners, is looking to raise as much as JPY25 billion ($250 million) for its third Japan care homes investment fund.

The Ostara Japan Aged Care Real Estate Fund 3 will focus on acquiring existing senior living assets with a view to generating a net IRR of 12-14%. RiverBridge Capital Partners will serve as placement agent.

Orion's two earlier care home funds raised JPY18 billion in 2007 and JPY11 billion in 2010 and are now fully deployed into 21 assets. These previous investments in senior living accommodation in Japan have made Orion one of the largest landlords in the segment with around 2,800 beds under management.

Japan is Asia's oldest country with a median age of about 45 and with around 30 million senior citizens accounting for just under a quarter of the population.

As such, businesses servicing this aging demographic have been an attractive target for private equity, with the Ministry of Health estimating that annual elderly care costs will more than double to JPY19.8 trillion by 2026. J-Star, Asian Capital Alliance and Globis Capital Partners have all invested in senior care homes.

 

 

 

 

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