Portfolio policy

The ARC Fund invests in the Dutch residential sector with a strong focus on affordable/attainable, high-quality and sustainable residential properties located in areas with the best economic and demographic potential. These areas are:

Figure 13: Focus areas

Mid-priced rental segment

The ARC Fund focuses on affordable/attainable rental homes in the mid-priced segment, consistent with our guiding principle of bringing sustainable homes in high-quality living environments within the reach of many. By investing in this segment, we help solve the growing shortage of affordable housing in the Netherlands. It is also attractive from an investment perspective due to the rising demand for affordable, high-quality housing in our focus areas.

The upcoming regulation of the rental market will divide the currently unregulated mid-priced rental market into a liberalised and a regulated segment based on the number of WWS points. Although this regulation is not yet in effect, the ARC Fund seeks to align its own rental segmentation approach with that of the proposed regulation.

Target groups

Our target groups are based on market trends and developments and determine our product-market combinations. Our primary target groups are:

• Young professionals: focus on mid-sized and large cities and the availability of amenities.

• Elderly singles and couples: focus on lifecycle-proof housing concepts near daily amenities to appeal to a growing population aged 65 and older.

• Families: focus on traditional and affordable SFH and MFH housing solutions.

• Key workers: focus on affordable SFH and MFH housing solutions.

• Expats: focus on serviced apartments and SFH and MFH units near mobility hubs.

Area management

Area management is an important part of the ARC Fund strategy. Amvest’s role as a project and area developer and our rotating Right of First Refusal agreement create attractive opportunities for investment. By investing in high-quality environments with the right amenities for the right target groups, we increase the value and quality of our assets and meet the demand.

Community management

To help solve the shortage of affordable housing, particularly in the largest cities, we invest in multi-family housing solutions characterised by  individual or shared apartments in a high-quality environment. Through our community management concept known as Livvin, we contribute to the quality of the living environment. The key characteristics of Livvin are:

• the Community Space to provide a place to connect and socialise;

• the Community Manager to assist tenants, forge connections and build the community;

• the Community App as a one-stop shop for tenants to participate in their community and manage service requests.

Community management is also key to our co-living concept 2Peer. This concept is targeted towards singles and young professionals in the four largest cities. It features shared apartments (c. 40m²) with private bedrooms and bathrooms and shared living rooms and kitchens. These properties are in proximity to public transportation and may include amenities such as flexible workspaces and gardens. The use of shared spaces significantly reduces the size of each private apartment, resulting in a lower rental price.

Sustainability

As part of our strategy, we invest in sustainable real estate and in sustainability improvements of our standing assets. We align our ESG strategy with the Amvest Impact Framework, a set of sustainability standards that along with financial return requirements will guide future investment decisions. The framework describes the four themes and twelve goals by which Amvest will assess and measure sustainable impact of investments. These themes are environmental impact, climate adaptation, quality of life and occupier satisfaction. In addition, we periodically assess our stakeholder interests by conducting a materiality assessment.

ESG initiatives by theme

Environmental impact – Roadmap to Paris proof

We are committed to achieving a Paris-proof portfolio. Through 2030, we will take action to reduce our carbon emissions and energy intensity (KWh/m2) by 50%, in line with the CRREM (Carbon Risk Real Estate Monitor) 1.5-degree reduction pathway. We have mapped and budgeted sustainability improvements at the asset level to develop our roadmap to Paris-proof. All assets that exceed the 2030 CRREM target of 18.6 kg CO2/m²/year for SFH and 16.6 kg CO2/m²/year for MFH qualify for improvement. We review and update our roadmap with new data on an annual basis to remain on track.

Climate adaptation – Risk assessment

We partner with Climate Adaptation Services (CAS) and used the AR5 Fifth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC) to conduct a risk assessment of our portfolio. This approach is supported by the Dutch Green Building Council (DGBC), of which Amvest is a partner. In 2023, we determined the gross climate risks (climate risks at a regional and local level) for the standing portfolio. In addition, we determined mitigation measures for objects in high-risk areas. We will continue to expand on our risk assessment.

Quality of life – Suitable homes for seniors

Due to a lack of suitable alternatives, many senior citizens live in homes that no longer suit them. We address the housing needs of older residents by investing in housing concepts that offer an attractive alternative to conventional single-family housing units. This investment strategy also contributes to the Dutch government's goal to increase the supply of suitable homes for older residents and, as a result, improve mobility in the housing market. We are in the process of assessing which homes in our portfolio meet the official definition of a 'zero-step' home based on various criteria, enabling us to market those homes as homes suitable for senior residents. In addition, the assessment may include targets for increasing the share of these homes in our portfolio.

Occupier satisfaction – Customer journey

We strive to be transparent and approachable for our residents to enhance their living experience. To this end, we launched our Customer Journey initiative focused on improving our residents’ experience from the moment they begin their housing search and throughout their tenancy. In 2023, we mapped several customer journeys related to renting, repair requests and renovation requests in detail and assessed opportunities to improve existing systems and processes. We will translate insights into concrete improvement initiatives related to, amongst others, repair requests, requests for renovation and the orientation and renting process