Apollo Healthcare Property Fund
The Apollo Healthcare Property Fund has been established to respond to the growing and changing demand for high quality, sustainable and affordable senior housing and facilities that benefit the well-being of both the resident and the user.
Hartelt Fund Management (Hartelt) is the manager of the Fund. Hartelt is a fund management organization founded in 2013 and has an AIFMD license. We are a specialized organization with management and employees who have extensive years of experience in the real estate market. Hartelt focuses on fund initiators, fund sponsors, fund managers and professional investors who set up investment funds within the alternative investment segment. Hartelt is member of GRESB and INREV and underwrites the Principles for Responsible Investment of UNPRI
The Healthcare property market
In 2050 the world has more than two billion people with an age of over 65 years. That is more than 20% of the population, while that percentage was only 10% in the 1990s. The cause lies in declining birth rates and the fact that life expectancy increases. The consequences are currently visible in the Western world due to retirement of the baby boom generation. The effects of aging of the population is an important demographic development, which influences the investment policy of many institutional investors.
The major trends in the Dutch Healthcare Market are:
People want to live longer at home. This development has been going on for some time and stems from the desire and the present-day possibilities to be able to continue to live at home.
Preference for small-scale care complexes in the vicinity of the former living environment, when living at home is no longer possible.
Specialization in healing and treatment. The central role of diagnosis and treatment in health centers plays a major role in this.
In The Netherlands the figures are impressive. The number of people over 65 years and 90 years will increase by respectively 55% and 191% in 2040. The number of people with a form of dementia will increase in 2040 from 250.000 to 400.000. An increasing number of people will need a form of care, care housing and care facilities. Next to increasing demand there is also a change in demand as a result of individualization in society. In order to be able to provide for the increasing and changing demand for care, new properties will have to be realized and the existing real estate will have to be replaced.
The Economic Institute for Construction (EIB) has translated these trends into an estimate for the required construction to provide the Netherlands with sufficient healthcare real estate. According to the EIB, there is an annual need to expand healthcare real estate from 800,000 m² to 2030. This implies an investment and financing demand per year of € 1.5 billion in 2016, rising to an annual requirement of € 3.3 billion in 2030
The Fund identifies, develops and manages investments in healthcare real estate objects that meet its financial and social objectives.
The Fund focuses on three segments of the Dutch healthcare real estate market: Assisted living, Nursing homes and Care and treatment centers. Assisted living offers housing to people, with a need for care, who want to live independently. In the property a combination of care, services and well-being is provided. Nursing homes focus on people with intensive care needs. This includes people with a severe psychogeriatric (including Alzheimer) and / or somatic condition. Care centers offer space to a range of healthcare providers in primary care, including general practitioners, physiotherapy and a pharmacy.
The Fund invests in solely in The Netherlands in municipalities with an increasing demand for senior housing and facilities.
Hartelt is member of GRESB, the Global Real Estate Sustainability Benchmark. The GRESB Real Estate Assessment measures the sustainability performance of real estate funds and portfolios. Apollo was awarded three stars for its ESG performance.
Additionally the fund requires all its real estate object to be GPR certified and to receive a minimum score of 7/10. The GPR score assesses sustainability performance in five themes: Energy, Environment, Health, Quality of Use and Future Value.
The intended size of the fund is 200 million euros. Stichting Pensioenfonds voor Huisartsen (SPH) is the first investor in the Fund with 80 million euros. The Apollo Zorgvastgoedfonds has been developed in collaboration with the Dutch Investment Institution N.V. (NLII). At the time NLII was established to enable institutional investors such as pension funds and insurers to invest directly in the Dutch economy.
The Fund started in 2017. Currently the Fund has nine properties in its portfolio with a total value of € 58 million. The portfolio offers a combination of new developments and standing investment. The current pipeline of the Fund is € 170 million.
Below a property for each investment segment of the Fund is shown.
Assisted living “Bataviahaven” in Lelystad
This assisted living complex with 56 apartments offers a combination of housing, care and services. The complex is situated on a beautiful residential location with shopping and restaurants in the neighbourhood.
Nursing home “Viattence” in Heerde
Nursing home for 96 people with an intensive healthcare need. Each living group of eight residents has its own look-and-feel with a shared living room, open kitchen and access to a communal garden. On the floors the individual (bed)rooms are located.
Care and treatment center “De Groene Hoven” in Apeldoorn
Modern Care and Treatment center which offers a wide range of healthcare services, including two general practitioners, a pharmacy and a physiotherapy practice.
The properties of the Fund generate a high social impact.
The Fund has developed an impact proposition as displayed below to clearly identify, quantify, manage and report the impact. The impact proposition acts as a flow chart that starts with the Fund’s mission and describes how its activities result in investment products for the Fund’s target groups. The target groups of the Fund are the residents, users and surroundings of the properties. The expectation is that this commitment will lead to positive social impact, both on the short and the long term. Through these paths, the Fund aims to actively contribute to high quality, affordable healthcare housing and facilities in the Netherlands.
The Fund has specific impact objectives that are periodically measured and reported through a unique online impact dashboard. Participants have access to the secure online impact dashboard, on order to follow the realized impact. Please contact us for a demo account of this innovative impact dashboard. Part of this impact dashboard is displayed below.
The Fund offers investors a combination of an attractive financial return and a sound social impact.
The characteristics of the Fund
- Responding to demographics
- Secure and stable Inflation-adjusted cash flows
- Limited risk due to long-term partnerships and lease contracts
- Sound social return/impact
- Diversification of the portfolio
The Fund is open to potential new Participants. The Fund is accessible to institutional investors and the minimum size of a participation is € 10 million.
Please contact us if you would like more information about the Fund.
Long term partnerships
The Fund enters into long-term partnerships with healthcare providers and institutional investors to make a contribution to provide the Netherlands with high-quality senior housing and care facilities.
The Fund offers healthcare providers and residents adequate, sustainable and affordable housing and facilities. The Fund takes care of the ownership of properties and provides maintenance so that healthcare providers can fully focus on providing high quality care services. Through a long-term lease contract, healthcare providers obtain continuity in housing and housing expenses. Moreover, balance sheet ratios of healthcare providers improve due to leasing instead of owning properties.
Would you like to know more about what the Fund can offer your healthcare institution? Please contact us.
|Duration:||Closed-end, in principle 15 years|
|Legal form:||Fund for joint account|
|Tax status:||Tax transparent|
|Leverage:||Target of 25%, maximum of 30% (actual: 0%)|
|Target size:||€ 200 million equity|
|Pipeline:||± € 145 million|
|Participation:||Minimum € 10 million|
|Manager:||Hartelt Fund Management B.V. (AIFM)|
|Supervision:||Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB)|
News – Apollo Healthcare Property Fund
3-5-2019 The Apollo Healthcare Property Fund acquires Assisted living complex in Mijdrecht
The Apollo Healthcare Property Fund has acquired Assisted living complex “De Kom” in Mijdrecht from healthcare provider Zonnehuisgroep Amstelland. Click for the full press release
8-1-2019 Case study: Affordable housing solutions in the Dutch care business
20-12-2018 The Apollo Healthcare Property Fund acquires a Healthcare center in Amsterdam
The Apollo Healthcare Property Fund has signed an agreement for the realization of the Healthcare center “Sportheldenbuurt’ at Zeeburgereiland in Amsterdam. Click for the press release
8-10-2018 The Apollo Healthcare Property Fund signs agreement to acquire Assisted living apartments in Lelystad
The Apollo Healthcare Property Fund has signed a letter of intent with construction company Van Wijnen for the realization of a care residential building in Lelystad. Click for the press release
10-09-2018 GRESB 2018: Hartelt Fund Management receives a 3 star score for its Apollo Healthcare real estate fund.
The results of the GRESB were announced on Friday the 7th of September. We are pleased to announce that Apollo has a score of 3 stars and has achieved the GRESB Green Star. Click for the press release.
24-05-2018 The Apollo Healthcare Property Fund acquires Nursing home in Schiedam
The Apollo Healthcare Property Fund has entered into agreements with construction company Gebroeders Blokland and healthcare provider Stepping Stones Home & Care for the development of a nursing home in Schiedam. Click for the press release.
22-05-2018 Start of construction Nursing home Viattence in Heerde
The construction of the Nursing complex “Viattence” in Heerde has started. The kick-off was done by aldermen Van Dijk and Berkhoff of the municipal college Heerde together with Viattence employee Mrs Scholten and resident Mrs Kamp. The construction can be followed live with our webcam. Click for the press release.
15-05-2018 Name change of the NLII Apollo Healthcare Property Fund
In the summer of 2016 the NLII Apollo Healthcare Property Fund was established in close cooperation with the Dutch Investment Institution (NLII). Now that NLII has announced that it will cease its activities, we have decided to change the name of the Fund to the Apollo Healthcare Property Fund. Click for the press release.
20-04-2018 Real Impact
The residential care housing market will change drastically in the coming decades. The cause is the so-called ‘double aging’: the number of people older than 65 years increases by 1.3 million over the next 25 years and the number of people older than 75 years even doubles. Consequently there is a growing need for high quality residential care housing and health care facilities. Click for the press release.
11-01-2017 NLII Apollo Healthcare Property Fund acquires two Care and treatment centers
The NLII Apollo Healthcare Property Fund has acquired the Care and treatment center “De Groene Hoven” in Apeldoorn. The Fund also signed a Letter of Intent to acquire the Care and treatment center “De Brug” in Hengelo. The Fund is on track in achieving its financial and social impact objectives. Click for the press release.
12-12-2016 Article in Financial Investigator about the Fund
There is a rapid growing need for healthcare real estate. Every day 28 Dutch people are diagnosed with dementia. In the next 30 years, the number of people over 70 years old will have doubled, and more than 500 new Care and treatment centers will be needed. A major task to realize quantitatively sufficient and high-quality healthcare real estate. It is an attractive addition for institutional investors in their portfolio, with a solid financial and a social return. Click for the article (in Dutch).
11-07-2016 NLII Apollo Zorgvastgoedfonds acquires first Nursing home
The NLII Apollo Zorgvastgoedfonds has signed an agreement with the healthcare provider Viattence and construction company BAM Vitaal Zorgvastgoed for the development of a Nursing home in Heerde. Click for the press release.
28-06-2016 Launch of the NLII Apollo Healthcare Property Fund
Hartelt Fund Management B.V. launches its first Fund: the NLII Apollo Healthcare Property Fund. This proposition has been developed together with Doctors Pension Fund (SPH) and the Dutch Investment Institution (NLII). The Fund invests in residential care housing and healthcare facilities. This gives institutional investors the opportunity to invest in the growing healthcare real estate market, which can make an important contribution to accelerating the necessary modernization of (health)care real estate in the Netherlands. Click for the press release.