Funds
Secerno Real Estate B.V.
The vision that Secerno Real Estate B.V. (hereafter SRE) and applies to all its initiated and managed investment property is characterized by:
- transparency about the investment proposition, its investments and its management;
- a clear risk profile, whereby in the first instance the risks and yield expectations are looked at in a very conservative way;
- the investment proposition that is socially relevant and -responsible because of the use and / or its presence;
- an additional assessment of the business case with regard to the investment proposition in the context of:
the revenues generated by the parties involved (tenants, involved parties etc.) are explicitly assessed and monitored, so that the continuity of the income is guaranteed. - the real estate property can be used for multiple purposes (or to a high market standard), so that the long-term availability (longer than the term of the lease) is guaranteed, or a redevelopment can be initiated in the event of a temporary disruption of the rental income.
- an additional assessment of the business case with regard to the investment proposition in the context of:
The objective is to interest (inter) national investors in Dutch real estate investments that SRE initiates and manages.
Secerno HealthCare Real Estate Fund B.V.
HealthCare Investment Strategy
Signals are green for investing in healthcare property
- Ageing population and the market dynamics in the HealthCare sector provide a structural improvement in the investment climate related to healthcare real estate.
- The Netherlands Government policy focus on elderly people to live longer at home combined with caregivers shifting provision of care to first-line centers in the neighborhood offers prospects for investors.
- The market for healthcare property is on the eve of further institutionalization.
The number of investors entering the market is increasing. The initial phase in which the healthcare market is located offers opportunities for early adopters.
In the Netherlands the Social Support Act has been introduced and is active as of January 1st, 2015. This act aims
- to let care dependent persons to live as long as possible independently at home.
- A result of this new act the need for new care centres with sheltered housing increases.
- The apartments/houses have to be facilitated as individual residences.
Dutch ageing population Prognosis 2013-2060
(Source: CBS Dutch population prognosis for 2013-2060)
At the current rate of Netherlands ageing the 65+ group increases in 2020 to 12% from 10% in 2018 and increases to 20% of the NL population by 2040.
A Solid Investment Proposition
In these apartment buildings healthcare is provided on demand by a healthcare provider. The healthcare provider hires the building on an average 10 – 15 years lease with the option to extend.
An apartment building rented to a strong primary party, for multiple years with the option that it can be redeveloped into regular residential accommodations is a solid investment proposition.
- The occupancy risk is minimized with a stable rental income.
- The need for complexes with care related services is increasing.
When several of these care centres spread over the Netherlands with different health care providers and services are combined into a Real Estate Investment Fund the vacancy risk is spread geographically as well as over health care providers and centres.
Based on the fact that after 2018 that Netherland is ageing with a new generation turning 65+ with the impact
- The %65+ age group in the population is increasing this maintains and increases demand for elderly housing options and concepts.
- This fuels the Secerno HealthCare Real Estate fund proposition which has a minimum target return of 6% .
The objective is to get both international and national investors interested in Dutch real estate investments that SRE initiates and manages.
As a result of the increase in the value of the real estate of the fund, the value of the certificates / shares will increase, this so-called indirect yield varies from 0.5% to 2.5% per year.
(Source: CBS Dutch population prognosis for 2013-2060)
The window of opportunity for an investor to enter into a NL investment proposition based on Ageing and Real Estate is NOW
Fund Structure
Characteristics of Secerno HealthCare Real Estate Fund B.V. :
- The forecasted return is 6% p.a. The dividend policy is to pay all profit (revenue minus costs) to the participants / investors.
- The majority of assets have long-term leases with a primary tenant (Health Care provider) and/or optionally ancillary persons (sheltered living).
- To ensure transparency, the fund has chosen an independent “Depositary” with an AIFMD license, that oversees the financial flows of the Fund.
- Closed-end fund with the objective to invest € 100 million in leased HealthCare real estate, in approximately three years.
- There are 2 ways for investors to participate:
- Shares : with preference (not cumulative) with a value of € 270,000 ( ± USD 307,800 and ± GBP 210,600 ) each.
- Certificates : These certificates are held by the Foundation Administration Office Secerno Funds, which issues certificates on the shares to the participants. The minimum deposit required by these participants is €100,000 (± USD 114,000 and ± GBP 78,000).
- Dividend policy: The intention is that the result achieved per quarter is distributed to the shareholders / participants.
- No administration costs are charged when certificates are issued.
- 3 Years after issue, the certificates can be sold back to the Fund, under conditions, with a charge of 2.5% emmission cost.
- The value increase of the property also increases the value (rate) of the Participation, this is called the indirect return.
Objects must meet the following minimum requirements to be considered for fund acquisition:
- Use of the property by a healthcare provider giving intramural and / or extramural care.
- The property is leased to a healthcare provider approved by the Dutch Healthcare Authority, for at least 10 years.
- In addition to the intended use by the healthcare provider, the object must have the possibility, both legally and in terms of location, layout and building requirements, to be redeveloped into separate units that could be rented or sold individually to third parties.
- The objects are located in The Netherlands, in good condition, delivered, free from third party liabilities. The lease must be in operation, and the first rental period payment has been met by the tenant and the rental guarantee has been received.
- The property must be located in an area where a population increase is projected for the next 25 years.
- Within walking distance of public transport (preferably regional), close to a neighborhood shopping center (supermarket) and a public recreational area.
- The property must comply with legal requirements, regulations and permits.
Registration with the AFM.
The entities are established and registered with the Chamber of Commerce. The cash flows are monitored by a custodian with AIFMD license. SRE is registered as a manager at the AFM, in accordance with the AIFMD regime as Dutch administrator (of the Secerno funds) falling under the exemption scheme (not licensed). In summary, this has the consequence that:
- Total managed assets by Secerno Real Estate B.V. amounts to a maximum of € 100 million (total value-managed assets),
- The non-professional investors have a counter value of at least € 100,000, – per participant.
