For institutional investors one of the advantages of putting capital into residential assets is that it that it fits their ESG agenda, Irène Fossé, Associate Director – Research & Strategy, AEW France, told The Real Estate Day.
‘There is a social element to providing good quality housing and professional landlords, while on the environmental side people who are the only landlords and therefore are in control can also manage the building in a very sustainable way,’ she said. This particularly easy with energy-efficient new-builds.
As the interest in impact investing rises, ‘senior housing is also seen as good ESG compliance because you are providing an alternative for residents between living alone in their house and living in a care home, which is only needed if you require medical care,’ Fossé said.
Senior housing is a much-needed intermediate phase. ‘When you talk to residents you realise how pleased they are to have an alternative in a residence where they can have care tailored to their needs, even from week to week,’ she said. If they are well they can go out shopping or to a restaurant, while if they are having a bad week they can stay in and eat in the home on a pay as you go basis.
AEW only invests in senior living in urban locations in France, not just Paris but also the main regional cities. ‘We look at the operators because they are absolutely key,’ Fossé said. ‘We select the best operators in terms of concept and business model, and that really drives our investment’.
The strategy on residential in general is to invest in PRS, build to rent and senior housing in urban locations with good accessibility, close to amenities like shops and restaurants and to choose a mix of existing assets and build to rent.
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