With Samfond, municipalities can lease instead of own
Through the fund, municipalities can lease rather than own important buildings. These may include assisted living facilities and other healthcare buildings, as well as schools or other important functional buildings. The purpose behind establishing Samfond is to contribute to the realisation of more real estate projects through attractive rental levels, long-term ownership and flexibility.
We would be happy to discuss your needs. The municipality can also contact Samfond's managers directly.
Contact information
Allstad offers municipalities across the country proven, experience-based solutions.
- Optimised for grants and VAT compensation
- Solid and experienced developer – Allstad is state-owned
- The municipality avoids both the investment burden and the risk when the designated-use period ends.
* If a municipality wishes to lease a care building to be developed by Allstad, Samfond may offer a lease proposal for the project. The price used as the basis for such an offer is based on the same price Allstad would have offered the municipality.
Allstad builds. The municipality avoids the investment burden.
We have access to centrally located and suitable plots for care buildings throughout the country.
We ensure safe and efficient project execution from A to Z, enabling the municipality to realise affordable, modern assisted living facilities.
Allstad collaborates with Samfond, the municipalities' own pension fund, with KLP as its main investor.
This gives the municipality two alternatives: buy itself or lease through a favourable agreement with Samfond. In that case, the fund buys the project and leases it back to the municipality under a 30-year agreement with flexible options.
Samfond can enable the municipality's new healthcare and welfare buildings
Samfond offers long-term and secure lease agreements that form the basis for the rental level Samfond can offer the municipality.
Housing Bank grants and VAT compensation may still reduce the rent for the municipality and residents.
By using Samfond, the municipality's risk related to the value of the purpose-built building after the lease period ends may be reduced.
Samfond and Allstad give the municipality more options
Samfond is a real estate fund that invests in social infrastructure such as healthcare and welfare buildings throughout the country. In practice, this means that Samfond can buy and lease out buildings serving important societal functions, such as assisted living facilities, healthcare centres, nursing homes, educational buildings and student housing.
The fund is owned by institutional investors with pension capital and managed by ABG Alternative Investments. The pension company KLP is the main investor and invests NOK 1.15 billion in the fund.
Segments: healthcare/care, education, other important functional buildings
Investments: existing buildings, real estate projects (renovation and new construction)
Allstad owns plots in nearly 300 municipalities and develops assisted living facilities in close dialogue with the municipalities. Allstad is a reliable developer with experience in building modern and efficient assisted living facilities. Allstad's collaboration with Samfond gives municipalities the opportunity to lease rather than own, and ensures a financially strong and long-term model for customised housing solutions.
Through Samfond, municipalities that prefer to lease rather than own can gain access to customised housing solutions for their residents. In practice, they can lease buildings serving important societal functions, such as assisted living facilities, healthcare centres, nursing homes, educational buildings and student housing.
The aim of the partnership is to create sustainable solutions that meet local needs and increase the pace of development of healthcare and welfare buildings in Norway.
| Structure | open-ended, with no fixed term |
| Type | low risk / unleveraged |
| Segment | social infrastructure |
| Geography | Norway |
| Target return | 10-year government bond yield with a market-based premium |
| ESG | SFDR Article 8 |
| Manager | ABG Alternatives |
| Investors | life insurance companies insurance companies pension funds other professional investors |
| Investments | assisted living facilities, day centres, healthcare centres, nursing homes, schools, student housing and other important functional buildings |
| Properties | completed or projects, modern and environmentally efficient |
| Leasing | long contracts, high occupancy, public and responsible tenants |
| Property operations | focus on “barehouse” contracts where the tenant is responsible for operations and maintenance |
SFDR Article 8 – investment strategy that promotes environmental and social sustainability
Social sustainability – creating well-being and security and contributing positively to the local community
Reducing energy consumption and the carbon footprint – actively measuring, monitoring and improving energy use, while choosing climate-friendly solutions, reusing materials and reducing waste volumes
Healthcare and welfare technology – contributing to sustainable operations and increased user satisfaction
Allstad is one of Norway's largest landowners, with plots, forests and uncultivated land distributed across around 300 municipalities throughout the country. The company is the continuation of the state's share of the Endowment Fund of the Norwegian Church, which from 1821 managed property and assets historically associated with vicarages in Norway.
Through developing its properties, Allstad contributes to good solutions for local communities and value creation for society as a whole. Allstad is wholly owned by the Norwegian state through the Ministry of Trade, Industry and Fisheries.
- Safe and efficient project execution from A to Z
- The leasing option with Samfond is handled through Allstad
- Allstad assists Norwegian municipalities in realising centrally located assisted living projects that help reduce pressure on municipal finances and resources.
- Municipalities can choose to buy from Allstad or lease from Samfond.
- Allstad builds assisted living facilities that help people remain in their own homes for longer. Older people have the opportunity to live in housing cooperatives with security through proximity to healthcare services and social arenas.
- The company has built assisted living facilities in Alstahaug and has an ongoing assisted living project in Lyngen municipality, and interest in Allstad's affordable assisted living models is high.
- Allstad's dividends go to the Church Preservation Fund.
ABG Alternative Investments
ABG Alternatives is a subsidiary of the ABG Sundal Collier Group, authorised by the Financial Supervisory Authority of Norway to manage alternative investment funds. The company offers long-term investment solutions, led by a team with backgrounds in established asset managers and real estate companies.
KLP
KLP is Norway's largest pension company. Approximately 900,000 employees and pensioners have their pensions with KLP. The company is owned by municipalities, county authorities, health enterprises and companies that provide their employees with public occupational pensions. At KLP, considering society, the environment and responsible investments is part of its daily operations. KLP manages more than NOK 1,000 billion, which is invested in ways that contribute to the faster development of sustainable societies.
Allstad
Allstad is a state-owned company with an extensive national land portfolio in nearly 300 municipalities and operations in real estate development and management, renewable energy and asset management. Allstad assists Norwegian municipalities in realising centrally located assisted living projects that help reduce pressure on municipal finances and resources. Allstad's dividends go to the Church Preservation Fund.
Seven good reasons why Samfond benefits the municipality
Residents can still receive the same services, but the leasing option means that the municipality avoids large one-off investments. Samfond enables municipalities to reduce investment pressure, free up capital and gain access to new assisted living facilities and other socially beneficial buildings without tying up substantial values in real estate.
Samfond is owned by institutional investors with pension capital. The main investor is the pension company KLP, which is owned by municipalities, county authorities, health enterprises and companies that provide their employees with public occupational pensions. The aim is to invest in socially important buildings with good and long-term lease agreements for municipalities throughout Norway.
Samfond can buy brand-new assisted living facilities and lease the buildings back to the municipality. Samfond collaborates with the state-owned Allstad, a solid and experienced development partner. Allstad optimises the buildings so that Housing Bank grants and VAT compensation may reduce the rent. The price from Samfond to the municipality is based on the price Allstad would otherwise have offered the municipality.
The model is based on long-term management rather than short-term gains. The municipality gets a professional partner with an interest in stable lease agreements over many years. This is also reflected in the rent Samfond offers the municipality.
Many municipalities already have substantial assets tied up in real estate. In that case, Samfond can offer the municipality a sale-and-leaseback arrangement, freeing up capital that can be used to operate schools, healthcare, care services and other prioritised activities.
Sale and leaseback is not new. The model is used by municipalities, public-sector organisations and private businesses alike. It provides predictable costs and long-term frameworks.
The leasing model is adapted to the municipality's needs. Long-term lease agreements provide predictability, but the municipality will also have the option of buying the buildings back in the future.
Could a lease agreement with Samfond be the solution?
Allstad gives the municipality a choice: buy itself – or let Samfond do so and then lease the building back to the municipality. Either way, the municipality gets access to the same high-quality buildings.
Kjell Roar Kaasa
Telephone: 97071000
Email: kjell.roar.kaasa@allstad.no
Helene Jordheim
Telephone: 90018156
Email: helene.jordheim@allstad.no
Ragnvald Drivenes
Telephone: 98102347
Email: ragnvald.drivenes@abgsc.no
Helge Haaland
Telephone: 93009513
Email: helge.haaland@abgsc.no