Two Dutch pension funds have committed €41m in total to Syntrus Achmea Real Estate & Finance’s (SAREF) healthcare fund, increasing the fund’s total capital to €421m.

The €1.5bn occupational scheme for veterinarians (Dierenartsen) and the €8.8bn pension fund for disabled workers in a sheltered environment (PWRI) committed the total amount to the Achmea Dutch Healthcare Property Fund (ADHCPF).

Dierenartsen had joined the fund, whereas PWRI had expanded its existing mandate.

IJmert de Vries, chairman of the investment committee at Dierenartsen, said healthcare property is an excellent addition to the scheme’s portfolio, citing the “attractive risk-return ratio” as well as the “clear social value”.

SAREF, which declined to provide details about the individual commitments, said the number of institutional investors participating in the fund had now increased to 13, 11 of which were pension funds.

The fund aims to grow to at least €800m, with the €500m mark to be reached in 2020.

A spokesman for SAREF said that returns were expected to be 7.5% on average.

ADHCPF invests in Dutch healthcare real estate, pursuing an active growth strategy.

The fund’s portfolio consists of modern, sustainable and future-proof properties in the segments residential property for elderly, residential care as well as primary care centres.

Last year, sustainability benchmark GRESB declared the SAREF fund the most sustainable healthcare real estate fund in the world.