Cofinimmo acquires six Flemish care homes

Tim Harrup

The healthcare sector continues to be of great interest to the major players in real estate. As a further example of this, Cofinimmo has just announced that on June 10th it signed an agreement for the acquisition of six healthcare sites in Belgium through contributions in kind of the shares of six companies. The conventional value of the assets for the calculation of the share price amounts to approximately 105 million Euros, and the contributions in kind amount to just over 98.52 million Euros. Trading in Cofinimmo shares on the regulated Euronext Brussels market is temporarily suspended due to this private placement.

Jean-Pierre Hanin, CEO of Cofinimmo, comments: “We are particularly pleased to add this portfolio of six healthcare sites to our Belgian portfolio. These operations demonstrate that, in addition to the geographic diversification and expansion operated in recent years, we are recognised and appreciated in our home market. This transaction is important, and relates to recent buildings. On top of this, we are welcoming a new operator in our portfolio with over 40 years of experience in both the construction and operation of nursing and care homes. Finally, we are strengthening our equity by almost 99 million Euros, which can be used to finance further investments. Together with the results of the optional dividend, this represents a strengthening of equity of almost 145 million Euros in two days.

Following this transaction, and taking into account the most recently completed transactions, the fair value of the Cofinimmo portfolio now amounts to 4.5 billion Euros, against4.3 billion Euros at 31.03.2020. Approximately 57% of this portfolio is in healthcare real estate and approximately 67% of it is in Belgium. Staying with the finances, for all six assets, triple net agreements with a term of 27 years were concluded with the operator. The initial gross yield is approximately 4.5%, which is in line with the current market conditions and the quality of the healthcare sites.

Turning to the sites together, they offer a total above-ground surface area of more than 38,000 m² and a capacity of 562 units. They are spread across Flanders. The buildings in this portfolio have a good average energy performance. They were built using modern and sustainable materials. Most of the buildings are equipped with photovoltaic panels and innovations to increase the residents’ comfort: high-efficiency glazing, an advanced double-flow ventilation system for air supply and extraction (D ventilation system), rainwater recovery, LED lighting, roof insulation and water softeners are just a few of the features that contribute to limiting the carbon footprint of these buildings. The operator is Orelia Zorg, a group specialising in elderly care. The sites themselves are located in Alost and Belsele (East Flanders), Dilbeek (Brabant Flamand), Borgloon and St.Trond (Limbourg) and Balen (Antwerp).