Cofinimmo acquires 16 healthcare assets in France and Belgium

Belgian listed property company Cofinimmo has closed an agreement with European senior healthcare firm Korian Group to acquire 14 healthcare properties in France for EUR 104.5 mln.

The portfolio, providing 1,272 beds of a total area of 63,493 m2, is being acquired through Cofinimmo’s French office in order to benefit from France's 'SIIC' real estate investment trust status. The company expects to complete the acquisition of a further five homes (423 beds, 21,910m2) for EUR 39.9 mln next year. The gross initial rental yield for the 19 properties will come to 6.55%, Cofinimmo said.

The Korian Group will continue to operate the portfolio and the deal includes triple net leases with a fixed duration of 12 years for all the buildings. The tenant has the option of renewing the leases for two consecutive periods of nine years each.

Cofinimmo also announced that is has acquired two nursing homes in Belgium. Hof ter Dennen, Vosselaar was acquired for EUR 3.55 mln from the Senior Assist Group. The 2,292m² building includes 77 beds. The deal includes 27-year leases, renewable by the lessee for two consecutive periods of 9-years each. The gross initial rental yield stands at 7.30%.

The agreement stipulates that, if the operator obtains an extension permit, Cofinimmo will pay an additional acquisition price of EUR 398,000, which will bring the rental yield to 6.56%, the company statement said.

Cofinimmo also acquired Zevenbronnen, Walshoutem, which includes a land reserve allowing future developments, from an individual vendor for EUR 5.18 mln. The 2,653m² building has 68 beds and has a gross initial rental yield of 6.10%. The deal also includes 27 year leases with the operator, Zevenbronnen, a member of the Calidus Group, which can be renewed twice by the lessee for a period of 9 years each.

Following the new investments, the health and nursing home segment now represents 21.1% (EUR 704.2 mln) of the total consolidated portfolio of the Cofinimmo Group, of which 9.6% is in France (EUR 321.1 mln) and 11.5% in Belgium (EUR 383.1 mln).