Fund strategy

The aim of the Fund is to respond to the demand for high-quality care homes suitable for people with heavy and light care needs. This strategy consists of three pillars:

1. Providing care and nursing homes for a broad target group

2. Building a sustainable real estate portfolio

3. Investment focus on stable, sustainable and impactful returns with a long-term horizon

1. Providing care and nursing homes for a broad target group

The AL&C Fund invests in care homes for people with heavy and light care needs in the lower-priced, mid-priced and higher-priced segments. We focus on real estate investments in the nursing home care and Assisted Living segments. In addition, we may invest in limited opportunities in short-stay, disabled care, and primary care facilities to enhance our service offering and diversification of the portfolio.

Assisted Living - Seasons

• Target group: elderly people and people with mild to heavy care needs who can still live independently.

• Opportunity: the government is increasingly incentivising the use of outpatient care due to the limited capacity in nursing homes and hospitals, increasing the demand for assisted living.

• Social impact: bridge the gap between regular residential living and the care home, address increase in loneliness, and reduce the demand for Social Support Act (“WMO”) care resulting in the lower cost of care.

• Rental segment: lower-priced, mid-priced, higher priced; with a strong focus on mid-priced.

Our Assisted Living concept known as Season bridges the gap between residential living and the nursing home. Seasons is centred around informal networks and communities of likeminded residents who aspire to a social, active and healthy lifestyle. These communities support social interaction among residents, which contributes to their overall well-being. Residents have access to professional care, which is provided by a home care provider and personalised to their needs. The AL&C Fund aims to invest in various types of Assisted Living. We will implement these housing solutions in partnership with home care providers and hospitality providers, which are all part of our Assisted Living ecosystem. Community managers will serve as the main point of contact for residents and support collaboration between all parties involved, including the municipality for the implementation of the 'Wet maatschappelijke ondersteuning'.

Nursing home care

• Target group: elderly people with a long-term care indication due to somatic and/or psycho-geriatric limitations and who can no longer live independently.

• Opportunity: meet the growing demand for nursing care homes as a result of double aging.

• Social impact: offer high-quality, individualised care regardless of income level, and contribute to solving the shortage of nursing homes.

• Rental segment: lower-priced, mid-priced, higher-priced.

Amvest invests in small-scale nursing homes that provide high-quality, individualised care to residents. We partner with four different care providers, each of whom focuses on a different target group. This way, we can provide high-quality care to people of any income level. We select tenants who have the potential to scale up our concepts to a minimum of five locations. The standardised nature of our projects allows for scale and for the delivery of affordable, high-quality care to a large target group. Amvest rents these properties to the care operator. In addition to investing in nursing homes operated by providers through the financing principle of separation of housing and care, we may invest in traditional nursing homes. If an opportunity arises, a thorough due diligence investigation will have to take place to assess the investment.

2. Building a sustainable real estate portfolio

The Fund invests in sustainable real estate that also meets all climate requirements in the long term, becoming a frontrunner in the market. In addition, the Fund creates social impact by investing in the development of integrated housing concepts that address loneliness by creating opportunities for social contact. Increasing the well-being of residents contributes to a reduction in care costs. Over 97% of the portfolio is taxonomy aligned.

We are committed to building a future-proof portfolio in line with the Paris climate target. We have a Paris-proof roadmap in place to meet the CRREM (Carbon Real Estate Risk Monitor) 1.5-degree targets for healthcare in 2030 for CO2 emissions and energy consumption. Between 2024 and 2030, we will invest in assets that are at risk of becoming stranded, meaning that they do not meet future energy efficiency standards and are at risk of becoming economically obsolete. To meet the CRREM targets, the average carbon emissions of the portfolio may not exceed 25 kg CO2/m2/year in 2030. We will reduce our CO2 emissions and energy consumption through sustainability measures at the property level and by adding sustainable assets to our portfolio. In 2024, we will initiate the process of improving the sustainability performance of at least 11 properties in the portfolio.

3. Investment focus on stable, sustainable and impactful returns with a long-term horizon

Investments in care real estate are less affected by economic fluctuations than traditional real estate. In addition, the demand for care real estate is expected to grow due to the changing demographics in the Netherlands. The nature of care real estate therefore ensures stable returns in the long term, in line with the risk profile of our investors.

In addition to generating attractive financial returns, we aim to generate strong non-financial returns: returns with a positive impact for investors, tenants and society. In 2023, Amvest introduced the Amvest Impact Framework, a set of standards or non-financial return requirements that along with financial return requirements will guide future investment and development decisions. The framework describes the four themes and twelve goals by which Amvest will assess and measure the sustainable impact of investments. These themes are environmental impact, climate adaptation, liveability and resident satisfaction.