Investments, divestments and redevelopment
In 2016, the size of the property portfolio increased to € 46.9 million from € 24.1 million. In the table below an overview is given of the acquisitions in 2016. The acquisition marked with an asterisk (*) was approved of in 2016 but signed in February 2017. It is mentioned in this annual report because it has a significant impact on Fund composition. The segment Intramural increases by approximately 8% with this acquisition.
Asset | Segment | City | Units | Theoretical rent | Delivery date |
Martha Flora Haarlem | Premium | Haarlem | 30 | 558,000 | Q4 2017 |
Zonnehuis Theresia | Intramural care | Ouderkerk a/d Amstel | 45 | 400,000 | Q1 2018 |
de Gijsbrecht | Assisted living | Ouderkerk a/d Amstel | 62 | 664,000 | Q2 2018 |
Zonnehuis Mijdrecht | Intramural care | Ronde Venen (Mijdrecht) | 45 | 400,000 | Q3 2018 |
de Proosdij | Assisted living | Ronde Venen (Mijdrecht) | 29 | 292,000 | Q3 2018 |
Ingenhouszhof deel B | Intramural care | Amsterdam | 80 | 593,000 | Q2 2018 |
Juliana Apeldoorn* | Intramural care | Apeldoorn | 107 | 930,000 | Q4 2019 |
Mariënpark Leidschendam* | Intramural care | Leidschendam | 70 | 600,000 | Q2 2018 |
Nieuw Cavaljé - Maanderzand* | Intramural care | Ede | 22 | 180,000 | Q2 2018 |
Nieuw Cavaljé* | Assisted living | Ede | 38 | 369,000 | Q2 2018 |
Houthaven: plint* | Other | Amsterdam | 900 | 144,000 | Q4 2019 |
Houthaven: Intramuraal* | Intramural care | Amsterdam | 45 | 445,000 | Q4 2019 |
Martha Flora Haarlem
Martha Flora is a fast growing premium dementia care organisation. They are specialised in dementia care in eight locations. The Haarlem residence is leased for 20 years. It comprises approximately 2,700 m2 and has opened on December 1 2016. It is located right on the border between Haarlem and Aerdenhout.
Zonnehuis Theresia and Zonnehuis Mijdrecht
Both buildings are leased by Zonnehuisgroep Amstelland (ZHGA) for 15 years. They have 45 dementia studio's for intramural care and are located in respectively Ouderkerk aan de Amstel and de Ronde Venen (Mijdrecht).
de Gijsbrecht
Located next to Zonnehuis Theresia, de Gijsbrecht has 62 care apartments and 45 parking spaces (23 in public area) in the Assisted Living segment. These will be leased by individual tenants with a need for care. Rental price range is between € 740 and € 1,000 per month.
de Proosdij
Located next to Zonnehuis Mijdrecht, de Proosdij has 29 care apartments and 24 parking spaces (16 in public area) in the Assisted Living segment. These will be leased by individual tenants with a need for care. Rental price range is between € 810 and € 920 per month.
Ingenhouszhof Deel B
This complex is for dementia clients, and elderly people with both dementia and psychic problems. It has 80 studio's, next to the complex Van 't Hofflaan (formerly known as Ingenhouszhof deel A), the first asset that was acquired by the Fund in 2014. It is leased by Stichting Amsta for 20 years.
Juliana Apeldoorn
A multi-tenant building, comprising two intramural care organisations totalling approximately 5,200 m2. One focuses on dementia care, the other one is aimed at people with a mental or physical disability. Both lease terms are 15 years.
Portfolio diversification
Current and target composition of the focus segments
Ultimo 2016, the composition of the Fund is not yet in line with the target distribution. This is due to the fact that opportunities do not arise in an orderly fashion, according to our plans. However, if we take into account all propositions that are approved in 2016 but not yet formally signed, we see a distribution that is already better aligned:
Assisted Living: 59% (target: 50%)
Intramural: 40% (target: 40%)
Other (PMSS segment and other): 1.3% (target: 10%)
Current and target breakdown of the segment Assisted Living
From the figures it is clear that currently the premium segment is over-weighed. This is also due to the above mentioned fact that opportunities arise with different speeds. If we again take into account all propositions approved, but not yet signed, we see an improved distribution:
Premium segment: 53% (target: 40%)
Mid-segment: 47% (target: 60%)
Risk distribution
In the figure below, the risk categories are shown. No target is displayed, as the Fund does not have formal restrictions with respect to this distribution. The reason for this is that all investments have a core profile.
Occupancy and lease characteristics
Over 2016, financial occupancy has been 100%. All lease contracts are master leases at the moment.
Sustainability
Bouwinvest considers investments in sustainability from a business perspective. Energy-efficiency measures (e.g. use of solar panels) improve the competitive position of the Fund’s healthcare properties and add value for our stakeholders, both investors and tenants. However, Bouwinvest’s sustainability strategy extends beyond energy use to the social aspects of sustainability, such as investments to upgrade local healthcare amenities and facilities, helping to create a pleasant environment where people can stay, meet and have access to the healthcare services they need, with attractive common areas where people can meet and loneliness is less of an issue.
We build value by addressing those issues that are important and relevant to our stakeholders, both investors (such as risk, returns, governance, stability and transparency) and tenants and their clients (such as comfort, energy use, materials and indoor climate). We engage both stakeholder groups in constructive dialogue. As a concrete measure, the Fund strives to improve sustainability drastically where it relates to re-development projects. Martha Flora is an example, where the redevelopment has led to an A label building using solar energy and insulation. For new-built projects, we aim at the level of BREAAM Very Good. To achieve our sustainability targets, there is a very clear set of sustainability requirements for both redevelopments and new-build projects. Our basis is to take a pro-active approach to sustainability and the standards we set are frequently higher than regulatory requirements. The Fund is currently investigating which sustainability label suits best (e.g. BREAAM, GPR or LEED).
Make or Buy
We have found that many existing properties on offer do not meet our criteria in terms of quality, location or lease conditions we have set for additions to our portfolio. This means that the share of new-build projects, as opposed to properties already in operation, has been higher than previously expected. New-build projects (as opposed to objects already in operation) mean that cash-out tends to be later than originally foreseen.