• Investment pipeline of 12 properties secured thanks to cooperation with Convivo
• Investment focus: Assisted Living Plus / Investment volume: €500 million
AviaRent has launched its new open-ended special AIF, “CareVision IV”. The company is thus continuing its successful series of CareVision funds, which invest in social infrastructure via the Luxembourg SICAV-FIS special fund structure. The €500-million fund will primarily invest in the Assisted Living Plus segment, supplemented by other care properties.
AviaRent has already secured a pipeline of twelve properties for “CareVision IV” through its partnership with the Convivo Group, a leading developer and operator of care and retirement properties. The pipeline developments are all CONVIVO PARKS; a special concept that combines assisted living, day care and shared flats for senior citizens with a housing guarantee and cost cap for residents.
“We now see assisted living as an asset class in its own right. With our focus on the Assisted Living Plus segment, we are concentrating on developing assisted living facilities for senior citizens and will continue to establish, promote and further develop this model in the market. We take a holistic view of assisted living and believe senior residences should be an integral part of their communities and meet the needs of all stakeholders”, says Yenna Haack, CIO of AviaRent Invest AG.
Demand for assisted living is increasing. By 2030, more than four million people in Germany will require nursing care. At the same time, baby boomers have a different attitude to previous generations and want to be cared for as individually as possible within their own four walls.
“As with nursing homes and micro-apartments, we see ourselves once again in a pioneering role with our “CareVision IV” fund, this time in the assisted living segment”, confirms Haack.
AviaRent was among the first to recognise the future impact of demographic change and launched its first “CareVision I” fund with a focus on care properties in 2009. The successor funds followed in 2013 and 2016.
CONVIVO PARKS typically consist of at least 55 barrier-free and supervised apartments, a day care facility with 15 places and two senior citizens’ shared flats for twelve people each. In addition to a basic service package, which is covered by a basic flat rate fee, residents can also book a variety of optional extras.
“Modern senior living needs to be rethought: In order for residents to live in one of our CONVIVO PARKS, a doctor must find there is a need for nursing home care. And because nursing care needs change over time, we offer our residents a special feature: a housing guarantee in the event they need a higher level of care. This includes in-house teams who provide round-the-clock care at whatever level is required, plus an increasing number of innovative optional services, such as a furnishing and relocation service and childcare for our care staff”, explains Dr. Andreas Weber, Head of Corporate Development and Strategic Marketing for the Convivo Group.
In partnership with Convivo, AviaRent is refinancing the CONVIVO PARKS project tranches related to “CareVision IV”, thereby enabling expedient and high-quality financing: “We are investing in the future of our society for our investors, who include German insurance companies, pension funds, superannuation schemes and foundations. And this high standard is reflected, among other things, in the fact that we refinance most of our investments through church institutions, social banks and local banks”, confirms Haack.
Convivo is currently developing CONVIVO PARKS valued at around €500 million. Further CONVIVO PARKS with a total volume of approximately €1.5 billion are in the planning stages. More than 80 of these residential parks are set to be built by 2025.
“The successful placement of the previous CareVision funds is testament to the sustained strong demand from our investors for attractive investment opportunities in social infrastructure and in particular in care properties. The predecessor funds to ‘CareVision IV’ have all been very successfully placed. Against this background and due to its focus on a pioneering concept in nursing care, we expect a rapid placement for ‘CareVision IV’ and are aiming to continue the successful model of the fund series”, explains Haack.
“CareVision IV” is designed exclusively for institutional investors such as insurance companies, pension funds, superannuation schemes, family offices, banks and foundations. The fund invests primarily in Germany. The investment strategy focuses on core investments with long-term cash flow, with a term of ten years and extension options for a total of two years. “CareVision IV” is targeting a diversified portfolio of nursing properties, assisted living and nursing homes that specialise in dementia and alternative forms of living. The aim is also to invest in state-funded nursing homes with sustainable operator concepts. The fund is targeting a regular distribution of 4.75 percent p.a. retrospectively.
“Assisted living is increasingly establishing itself as an asset class in its own right and offers investors a number of advantages, such as excellent third-party usability, eligibility for refinancing and risk diversification. Compared to earlier generations, today’s senior citizens are very well-0ff and want to live a self-determined life in their own homes well into old age. That is why we have defined the investment focus of ‘CareVision IV’ as ‘Assisted Living Plus’”, explains Haack.
“CONVIVO PARKS offer flexible living for senior citizens with round-the-clock services and care. Residents benefit from our nursing care and are able to maintain their privacy and self-determination. At the same time, the care they receive is tailored to their individual needs. This creates security”, explains Weber.
In many cases, CONVIVO PARKS also feature children’s day care centres and thus contribute to their communities in numerous ways. Not only does the creation of age-appropriate housing indirectly free up living space for younger people, the integration of additional services also means that CONVIVO PARKS act as hotspots. Particularly in suburban areas, the facilities thus make an important contribution to reurbanisation.