Aegon invests in unique retirement concept

Together with the second largest pension fund in the Netherlands, Zorg en Welzijn (PFZW) Aegon has invested an additional €200 million in small-scale assisted living, for people who are no longer able to live independently.

The investment will be made in four care concepts aimed at different income groups, with rates from €750 per month, including all services, utilities, cleaning and meals. The approach is unique in that the investment is in the bricks and mortar as well as the care for the elderly who are no longer able to live without assistance.

The investment is being made via Amvest, a fund management and property development company established by Aegon and PFZW in 1997, with around 20,000 homes in its portfolio. To date the fund has attracted investments of €300 million, with expectations that this will be increased further.

Growing demand for retirement properties

The group of elderly who are no longer able to live independently will only continue to increase in the future. "It is important that there is sufficient capacity to be able to offer this growing group quality facilities where they feel at home," says Peter Borgdorff, Director of PFZW.

"This is precisely what we're aiming for with these locations. And better still, any profit made from these investments flows directly back to the pensions of everybody who works in the health and welfare sector."

The additional € 200 million is expected to be invested in a number of new locations in the Netherlands by the end of 2018. This will bring the number of care facilities under the Amvest Living and Care Fund to around 100.

Impact investments

Investments in retirement homes, together with investments in affordable housing, wind power, microfinance and other initiatives that benefit society are known as impact investments.

Aegon has more than three million euro invested in impact investments, and is actively seeking out further impact investments. "We're keen to invest in long-term investments with a social impact and a good return for our pension scheme members," explains Maarten Edixhoven, CEO of Aegon the Netherlands.

"The increase in our investment in the Amvest Living & Care Fund is the ideal fit, making a concrete contribution to affordable assisted living, and at the same time to the wellbeing of the elderly. A win-win-win situation."