AEGON Target Healthcare Property Fund secures new investors

AEGON Asset Management has secured two more institutional investors, through DTZ Investment Management, for its innovative AEGON Target Healthcare Property Fund.

The latest investment brings an additional £12.5 million to the fund, which now totals more than £42 million.

The AEGON Target Healthcare Property Fund aims to take advantage of the predicted increase in healthcare needs of the UK's ageing population, particularly for care homes where the increases in longevity will push demand for specialist care.

The fund's stock selection focuses on high quality operators with a preference for new build care homes. It can also potentially invest in critical care, day surgery, dementia care or learning disability units.

It is a closed ended fund managed by Phil Clark and Anne Copeland of AEGON Asset Management's property team.

Clark says: ‘This latest investment provides further endorsement of the uniqueness and competitiveness of our proposition. It also recognises the potential for the fund to provide a future hedge against inflation as the rental yields are generally linked to the retail price index.

‘We believe there is growing demand for healthcare facilities in the UK as the post Second World War Baby Boomers retire and their healthcare needs increase. Independent figures show that 20% of 70-74 year olds need some form of assistance with daily living, while for the over 90s this increases to more than 70%. The huge demographic shift in the UK population means that by 2031 there will be 2.85 million people aged 85 plus. As such, the demand for healthcare facilities can only increase over the next 20 years.

‘This latest investment comes at a very challenging time for the property sector, which has seen many of our peers struggling to secure funds for their newly launched products'.