The Investment Strategy of the Apollo Healthcare Property Assisted Living Sub-Fund is specifically aimed at investing in affordable and sustainable high-quality assisting living accommodations and facilities to improve the lives of people who need healthcare. The Sub-Fund promotes environmental and social characteristics but does not have as its objective sustainable investments. All investments (100%) are aligned with the environmental and social characteristics of the Sub-Fund. No sustainable or taxonomy aligned investments are made. It promotes environmental characteristics by assessing the energy performance of every invested property of the Sub-Fund and if needed the Sub-Fund will gain insight in the possibilities for improvement of that energy performance. Furthermore, the Sub-Fund promotes environmental characteristics by taking principle adverse impacts into account.
Next to the environmental characteristics the Sub-Fund promotes social characteristics by investing in affordable, sustainable assisting living accommodations. The Sub-Fund invests in healthcare properties that are categorised in the affordable and/or mid-market rental segment. The Sub-Fund is expected to achieve the promotion of the environmental and social characteristics by investing only in real estate properties that:
- meet a minimum GPR score of 7.0 (in case of existing properties) or 7.5 (in case of newly built properties)
- are in the assisting living segment
- are categorized in the affordable and/or mid-market rental segment
After an investment is made a long-term maintenance plan is compiled to ensure that the properties stay future proof, by becoming more energy efficient, emitting less greenhouse gases and the energy and water consumption of the building being reduced. Every year each property is reviewed. Information is obtained from the care organisation and with help of external parties this information is aggregated in a report that helps the fund manager to establish priorities in order to guarantee that the property continues to meet changing care requirements and improving sustainability factors.
No sustainable investment objective
This financial product promotes environmental or social characteristics but does not have as its objective sustainable investment.
Environmental or social characteristics of the financial product
The Apollo Healthcare Property Assisted Living Sub-Fund promotes both environmental and social characteristics by investing in real estate properties in the assisted living segment, by integrating the GPR-method in the investment decision process and by taking principle adverse impacts into account.
The investment strategy of the Sub-Fund aims to improve the energy performance of the real estate properties and aims to reduce the energy and water consumption and the greenhouse gas emissions. Therefore, more specifically environmental characteristics that lead to climate change mitigation, climate change adaption, and the transition to a circular economy are promoted.
Next to the environmental characteristics, the Sub-Fund promotes social characteristics by investing in affordable and sustainable healthcare housing and facilities. The Sub-Fund invests in principle in healthcare properties that are categorised in the affordable and/or mid-market rental segment.
Furthermore, it invests only in in real estate that falls within the assisted living segment. The assisted living segment is defined by properties that have a residential real estate character with a healthcare and/or well-being component and therefore the social characteristic adequate living standards and wellbeing for end-users and tenants are promoted.
The mission of the Apollo Healthcare Property Assisted Living Sub-Fund is to initiate and manage long-term partnerships with institutional investors and healthcare providers to meet the growing and changing demand for affordable, sustainable care housing and facilities. The Sub-Fund shall invest in residential real estate with a healthcare well-being component.
The sustainability of all real estate properties is tested extensively using the GPR-method, covering five themes:
We assess the energy performance of each property and gain insight into the possibilities for improvement.
Raw materials are becoming scarcer and more expensive. The built environment consumes more than 30% of the raw materials and causes harmful emissions. Renovating or demolishing existing buildings limits harmful emissions and depletion of raw materials.
People spend a large part of the day in a home, office, or school. But the indoor environment is often unhealthy. The aim of this theme is the realization of healthy buildings. Think of limiting noise pollution, sufficient fresh air, comfortable ventilation, and sufficient daylight.
- User quality
Society is aging. But we want to live at home longer. Care and housing must therefore be combined. Young people, families or the disabled have different needs. And everyone wants a safe living environment.
- Future value
There are neighbourhoods where people do not want to live and neighbourhoods that are popular. If the environment is dear to people, the value of the property increases. With a good score on this theme, a property can be adapted to changing user requirements or legislation and regulations without high costs or much material waste. This means taking into account the change of function and amenity value of the environment during construction or renovation.
Real estate properties can only be included in the fund portfolio if a certain minimum GPR score is met. The minimum GPR score for new building projects is 7.5 and for existing real estate the minimum score is 7.0. The GPR score of each property is assessed by external parties to ensure an independent judgement.
Since investments are made in real estate assets the good governance requirement is not applicable.
Proportion of investments
The Apollo Healthcare Property Assisted Living Sub-Fund invests in real estate properties that fall within the Assisted Living segment. All investments (100%) are aligned with the E/S characteristics promoted and are made in direct exposures. There is no commitment to make sustainable investments nor taxonomy aligned investments.
Monitoring of environmental or social characteristics
Once a new property has been added to the portfolio, an independent specialist firm conducts an extensive technical condition measurement (a so-called NEN-measurement). Following the technical condition measurement, a long-term maintenance plan is compiled to ensure that the properties stay future proof, by becoming more energy efficient, emitting less greenhouse gases and the energy and water consumption of the building being reduced.
After the property has been acquired or delivered, the fund manager continues to actively manage it in the operational stage. Doing so guaranteeing that the property continues to meet changing care requirements and improving sustainability factors. To facilitate active management, the fund manager compiles an annual review for each property, stating the relevant healthcare market trends and any organisational/financial issues impacting the care organisation. The necessary input for the report is obtained through consultation of all relevant parties, including the care organisation.
To ensure that the real estate properties are energy efficient, emit less greenhouse gas and the energy and water consumption is reduced, the fund manager monitors the progress on these topics. Once a year, the fund manager collects information from all the real estate properties. An external expert aggregated this information in a report. Based on this report the long-term maintenance plan is adjusted.
Since all investments are made in affordable and sustainable assisting living healthcare housing the social characteristics are always met.
Data sources and processing
The fund manager uses data collected through the GPR-score of the real estate. Next to this, data about the energy and water consumption is collected from all the real estate properties.
The GPR score of each property is assessed by external parties to ensure an independent judgement and data quality. The information about the energy and water consumption is aggregated in a report by an external expert. Based on this report the long-term maintenance plan is adjusted.
None of the data is estimated.
Limitations to methodologies and data
There are no limitations to the methodologies and data because the data is directly attained from the real estate companies and reviewed by third parties.
Before an investment is made the fund manager checks whether real estate properties are in the assisted living segment and in the affordable and/or mid/market segment. Next to this real estate properties can only be included in the fund portfolio if a certain minimum GPR score is met. The GPR score of each property is assessed by external parties to ensure an independent judgement before an investment is made.
There is no engagement strategy.