Cofinimmo adds three nursing homes to its portfolio

Belgian real estate company Cofinimmo said it has acquired three nursing homes in the country's Walloon region for EUR 12.3mln. The deal reflects an initial yield of 6.36%.

The company said it had signed an agreement to purchase a nursing home in Vigneron in Ransart as well as two Belgian companies, Sogemaire and Sitec, which own nursing homes in L’Adret in Gosselies and Top Senior in Tubize. Vigneron was purchased for EUR 2. 5mln at an initial yield of 6.24%, L'Adret was bought for EUR 6.5mln at an initial yield of 6.42%, while Top Senior was acquired for EUR 3.3mln at an initial yield of 6.34%. The deals were financed with debt.

Cofinimmo is active in the office, pub and care/nursing home sectors. The acquisitions bring the nursing/care sector of Cofinimmo's portfolio to 15.8% of the total and confirms its position as a major player in this field. According to Ingrid Schabon, corporate communications manager, the acquisition reflects the company's policy 'to actively contribute to the growing demographic needs'. However, the company said there was no strategy to increase this particular sector of the portfolio nor was the company actively searching for international expansion. Schabon added: 'If the acquisitions meet our investment criteria and we believe we have sufficient knowledge of the market we may consider investing abroad, as we did in France with the Medimur acquisitions.'

Cofinimmo owns a portfolio of more than EUR 3bn, representing a total area of 1,500,000 m². Its market capitalisation amounts to EUR 1.6bn. The company had 59 homes covering some 261,055m² and providing a gross initial yield of 6.28% at end-2007.