Major risk factors and corrective measures
Below a short overview is given of the measures that are taken to minimise risks with regard to the relatively new healthcare market. At the core is our strategy to invest in ‘government resistent’ property, with means that the propositions are not dependent on government subsidies, with respect to the real estate (lease) costs.
Risk control overview
Risk | Explanation | Control measure |
Affordability (Political risk) | Healthcare costs for consumers increase due to the reducing role of the Dutch government | Focus on competitive rent levels (mid price range). |
Diminishing demand | Adverse economic conditions or changing views towards healthcare could lead to less demand | Solid demographic drivers are at the core of the fund. Also, prevailing real estate is acquired, to optimise alternative lease or use. |
Continuity of operations | An operator might not be able to fulfill his obligations to the fund | Focus on prevailing buildings, through financial due diligence, extended guarantee. |
Competition | Number of both domestic and foreign investors increases | Building networks in the Dutch healthcare market, efficient acquisition of smaller objects as foreign investors seek only large investments. |