• Joint project launch celebrated by AviaRent and Convivo
• AviaRent raises €19.7 million for the property via its CareVison IV fund
• New 11,000-sqm property to offer Assisted Living Plus with 74 rooms
• Outpatient care facilities for 15 patients and 14 accessible apartments
AviaRent Invest AG and the Convivo Group celebrated October 25th the laying of the foundation stone for the new Convivo Park Alte Feldwiese in Wedemark, to the north of Hanover. AviaRent will acquire the property at the time of its completion as part of a forward deal involving its open-ended CareVison IV special real estate AIF. The property has been acquired for €19.7 million and completion is scheduled for the end of 2020.
Convivo’s new park will now be developed on an 11,000-sqm site in the Elze district. Designed to deliver peace of mind and enable carefree living in the Assisted Living Plus segment, the new park will combine serviced living, outpatient care and shared apartments for older citizens with round-the-clock care and support, a housing guarantee and a rent cap for the new park’s residents.
The new Convivo Park will feature 14 fully-accessible, semi-detached bungalows with terraces and parking spaces, together with 48 serviced apartments on the first and second floors of the main building. The ground floor accommodates two shared apartments, each home to 12 micro-apartments and an attractive terrace. Non-residents will also be able to benefit from the outpatient care facility, which is equipped for 15 patients, as well as Convivo Park Alte Festwiese’s roomy cafeteria.
Convivo will operate the property for an initial 20 years. The new park marks the start of what will be a fruitful partnership. AviaRent and Convivo already have 12 more projects in the pipeline, all of which will become part of the CareVision fund series.
“Our development in Elze is something of a pilot project. The forward funding of these and other projects enables us to secure the product our investors and the market want at a very early stage. With a clear focus on the Assisted Living Plus segment, we are stepping up our investments in the serviced housing model for older citizens. We have adopted a holistic approach to assisted living, ensuring that new facilities are fully integrated into existing neighbourhoods and considering the interests of all stakeholders”, says Yenna Haack, CEO of AviaRent Invest AG.
Peace of mind and “carefree living” for older citizens
Convivo’s model of “carefree living” reflects the latest developments in the traditional serviced living and assisted living concepts. Convivo Park residents benefit from a wide range of additional services and care, all of which can be accessed around the clock and on site. The Parks’ staff are always on hand to provide both nursing and household services, giving the classic communal model of senior citizens care a welcome contemporary upgrade.
“Everyone should enjoy the freedom to determine their own lives independently. No matter how much personal support is required, no matter at what time of night or day”, explains Dr Andreas Weber, Head of Corporate Development and Strategic Marketing at the Convivo Group, outlining the company’s philosophy of “carefree living”.
Convivo Parks offer personalised services and flexible housing, adapted precisely to the personal needs of every resident. “Carefree living means independence – both in terms of living and lifestyles – at every phase of life. Feeling truly at home means being able to do everything you want, when you want and how you want. Convivo Parks offer this security and freedom in bungalows, apartments and micro-apartments”, explains Weber.
According to Weber, Convivo’s unique approach to housing and care is based on three key promises. First, even if residents need more care, they can stay in their homes (housing promise). Second, care can be provided around the clock, anywhere in the Park (service promise). Third, residents are guaranteed a high quality of life at a price that is comparable to an inpatient care facility (price promise).
Convivo is currently developing Convivo Parks worth around €500 million, with another €1.5 billion of developments in planning. More than 80 of these pipeline residential parks are scheduled for completion between now and 2025.
“In response to high levels of demand from our institutional investors, we are already finalising the details of a successor fund to CareVision IV and are currently looking for suitable properties and concepts so that we can build on the successes of the CareVision fund series”, confirms Haack.
CareVision IV is designed exclusively for institutional investors, such as insurance companies, pension funds, superannuation schemes, family offices, banks and charitable foundations. The fund invests primarily in Germany. The fund’s investment strategy focuses on core investments with long-term cash flows, with a term of ten years and extension options for a total of two years. CareVision IV is establishing a diversified portfolio of nursing properties, assisted living and nursing homes that specialise in dementia and alternative forms of living. The fund also evaluates investments in state-funded nursing homes with sustainable operator concepts. The fund is targeting a regular distribution of 4.75 percent p.a. retrospectively.
AviaRent was among the first to recognise the future impact of demographic change and launched its first CareVision fund with a focus on care properties in 2009. Successor funds followed in 2013 and 2016.