Cofinimmo has sold two office buildings for almost EUR 70 mln as part of its strategy to increase its holdings in the nursing home sector.
Cofinimmo has sold two office buildings for almost EUR 70 mln as part of its strategy to increase its holdings in the nursing home sector.
The Belgian listed real estate company announced on Thursday that it has sold the Montoyer Science office building in the Leopold district of Brussels to German fund manager Hesse Newman for EUR 57.2 mln. The 12,800 m2 property dates from 1993 and is let to the European Commission.
Cofinimmo said it had also completed the sale of the properties Veldkant 31-33 in Antwerp to a private investor for EUR 11.4 mln. The property was delivered in the early 2000s and offers 9,400 m2 of office and warehouse space.
Cofinimmo said that the transactions reflect its strategy of an active arbitrage of its portfolio making it possible to grow its exposure to the healthcare property sector.
As part of this investment programme, Cofinimmo acquired all outstanding shares in Kosalise, owner of the nursing home Susanna Wesley located in 1180 Brussels, rue Beeckman 26. The existing property was valued at EUR 6 mln, which is in line with the value determined by the independent real estate expert.
Cofinimmo plans to extend and subsequently renovate the existing nursing home for an expected total budget of EUR 7.8 mln. After delivery of the works, expected during the 2nd quarter of 2013, the renovated and enlarged nursing home will count 4,900 m2 and 84 beds. As from then, Cofinimmo will start receiving the rental income on this asset, the expected rental yield standing at 6.35%.
The nursing home will be operated by Armonea, with whom Cofinimmo will conclude a 27-year triple net long lease.
Cofinimmo owns a EUR 3 bn portfolio that comprises office, nursing home and pub assets.
