Fact panel
| Investee: Scholen van Morgen | Investor: AG |
|---|---|
| Sector: Education (social) | Range of Investment tickets: €1 - 5 million |
| Type of organisation: Public Organisations (schools) | Sector: Education / infrastructure |
| Yearly turn-over: N/A | Type of investor: Insurance |
| Type of investments: B | Type of investment: Private debt |
| Country of investee: Belgium | Expected return (of the fund): Similar to market return |
| Investment strategy: sustainable investment | Specifics: Innovative financial instruments to address public needs |
| Ticket size of the investment: €1,5 billion | LP: BNP Paribas |
| Year of investment: 2010 - Program Initiated |
The what: Scholen van Morgen, a B-type investment
Problem addressed:
Belgium’s education system is broadly accessible and publicly funded, but persistent challenges limit its ability to deliver high-quality, equitable learning. Key issues include teacher shortages, deep-rooted educational inequalities, and the stigma around vocational training. A critical yet often overlooked problem is the poor condition of school infrastructure, particularly in urban and disadvantaged areas, where outdated facilities hinder learning and widen gaps. To build a more inclusive, future-ready system, strategic investments are needed to improve quality, modernize infrastructure, and bridge socioeconomic divides. Strategic financial interventions can play a key role in supporting this transition toward a more resilient and future-ready society.
Solution provided by AG
Due to the significant shortage of funding for school construction, the Flemish government sought an alternative solution in 2005 to reduce the long waiting lists. This led to the creation of a Public-Private Partnership (PPP). The selected private partners were BNP Paribas Fortis and AG Real Estate, who, together established the company DBFM Scholen van Morgen nv. This entity was made responsible for coordinating the catch-up operation, with AG Real Estate acting as the delegated project manager and AG acting as lender.
The schools are developed under the DBFM model, which stands for Design, Build, Finance, and Maintain, meaning that DBFM Scholen van Morgen nv oversees the design, construction, financing, and 30-year maintenance of the school buildings. During this 30-year period, the school boards pay an annual availability fee. At the end of the term, the buildings are transferred to the school boards without additional costs.
The how: AG, a Belgian insurance company
General presentation of AG/AG Real Estate
AG is Belgium’s market leader in insurance and headquartered in Brussels. AG serves individuals and families, self-employed, and small and large companies. AG is 75% owned by AGEAS and 25% owned by BNP Paribas Fortis. AG Real Estate is the real estate wholly owned subsidiary of AG Insurance and the real estate competence center of Ageas. AG Real Estate manages a portfolio of diversified assets as an integrated operator in an optimal and sustainable manner to reshape the cities of tomorrow.
AG is firmly committed to sustainable development and is continuing on its path towards a zero-emissions portfolio by 2050 by integrating environmental, social and governance objectives into its investment strategy. The sustainable actions that AG, AG Real Estate and Ageas undertake are assessed on an annual basis and implemented by means of operational procedures.
Intentionality
AG & AG Real Estate’s involvement in Scholen van Morgen reflects a clear and deliberate intentionality to contribute to improving Belgium’s educational infrastructure and societal well-being. As a private insurer and long-term investor, AG did not simply seek financial returns; it purposefully partnered with public authorities to close critical investment gaps in school infrastructure. By engaging in a Design, Build, Finance, and Maintain (DBFM) model, AG committed capital and expertise over a 30-year period, ensuring not only the construction of 182 new or renovated schools but also their ongoing maintenance and operational quality.
This intentional strategy was rooted in a broader vision: enhancing the learning environment for tens of thousands of students across the Flanders and Brussels region in Belgium, supporting social cohesion, and fostering long-term human capital development. Rather than passively financing isolated projects, AG proactively designed a structure that guaranteed continuity, quality standards, and affordability for public authorities, effectively removing major barriers to access for many communities.
Impact measurement and management
In Scholen van Morgen, AG Real Estate embedded structured impact measurement and management practices to ensure the project’s social objectives were met over its full 30-year life cycle. Impact was tracked primarily through operational performance indicators, including the number of schools built or renovated, the quality and sustainability of the infrastructure, maintenance standards, and the accessibility for students across different regions. The DBFM model itself required continuous monitoring and reporting on the condition and usability of school facilities, ensuring that high-quality learning environments were maintained over time.
Furthermore, contractual agreements included detailed Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to building performance, energy efficiency, and user satisfaction, providing clear and measurable benchmarks. AG Real Estate’s approach leaning heavily on operational and infrastructure outcomes created a strong mechanism for managing the long-term maintenance commitment consistently and transparently. Regular reviews, independent audits, and feedback from school operators and public authorities further reinforced accountability and ensured that the project remained aligned with its intended social purpose throughout its lifespan.
Additionality
AG’s involvement in Scholen van Morgen brought significant financial additionality by offering long-term, stable funding that filled a critical gap in the public financing of school infrastructure. By using a DBFM model, AG & AG Real Estate provided not only the initial capital needed to construct and renovate schools but also committed to long-term maintenance and operational support. This innovative financing structure ensured that schools could be built quickly without burdening public budgets with immediate capital expenditures or long-term operational costs. The bond-like nature of this investment, coupled with AG’s commitment over three decades, offered a financially sustainable model for public authorities, making it a crucial enabler of the project’s success.
Beyond the financial contribution, AG also demonstrated non-financial additionality by providing expertise and management capabilities that were essential to the success of the project. As an investor and long-term partner, AG ensured that schools were not only constructed but also maintained to high standards for decades. The company’s approach incorporated rigorous governance structures, enhancing the quality and longevity of the facilities, providing reliable operational management that the public sector might otherwise lack. Furthermore, AG’s involvement created a model of private-public partnership, bringing in the private sector’s efficiency and expertise while ensuring that the social impact, improving education infrastructure for future generations, remained the primary focus.
More information
- Scholen van morgen
- AG Real Estate
- Sustainability at AG
- Sustainability strategy Ageas
