Cofinimmo's new French care home REIT buys first asset

Brussels-listed real estate investment trust (REIT) Cofinimmo has announced the acquisition of a care home in Paris for just under EUR 21 mln.

This is the first asset acquired by Cofinea I, a French REIT in which Cofinimmo has a 51% stake and care home specialist Orpea holds the remaining 49%.

The two companies signed a partnership agreement in November last year to establish joint ventures for the acquisition, ownership and renting of healthcare real estate assets operated exclusively by Orpea. They plan to grow their first vehicle, Cofinea 1, to EUR 500 mln of assets under management in five years.

The asset, EHPAD, and comprises 107 care beds on a total surface area of 4,265 m². Orpea operates the property and has signed a 12-year 'triple net' commercial lease contract with Cofinimmo.

They also signed a green lease contract, in accordance with France's Grenelle de l’Environnement ' legislation. The green lease contract is designed to ensure collaboration between the tenant and landlord to improve the environmental performance of the building.

Cofinimmo, a registered REIT in Belgium and France, owns a property portfolio worth over EUR 3 bn, representing a total area of 1.8 million m². Its main investment segments are offices, care homes and distribution property networks.