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In 2014, the Cofinimmo Group strengthened its geographical diver-
sification in healthcare real estate by expanding its investments in
Germany. Cofinimmo is not only interested in rehabilitation clinics in
Germany but also in accommodation for the elderly.
The group has also strengthened its presence in the Netherlands
through the acquisition of a portfolio of 13 new or to-be-built health-
care facilities.
In some more mature markets, such as France for example,
Cofinimmo has initiated a selective arbitrage policy. This involves
selling non-strategic assets and reinvesting the funds generated in
other assets which are more in line with the Group’s vision, namely
new constructions. The criteria taken into account in the decision
to sell a healthcare asset relate in particular to its size, its age, its
location, its operation and the residual term of the lease
Portfolio at 31.12.2014
At 31.12.2014, Cofinimmo’s healthcare real estate portfolio accounted
for 40.3% of its total invested portfolio. It comprised 134 properties,
with a total above-ground floor area of 682,461m
2
and a fair value
of €1,289.1 million. It includes nursing and care homes, revalidation
clinics as well as psychiatric clinics.
The main characteristics of this sector are:
•
These investments benefit from a favourable legal
environment: they are based on real growth needs due to
demographic changes and they are highly regulated, both
at national and regional level, presenting a significant entry
barrier;
•
The leases concluded with operators are long-term. They have
an initial fixed term of 27years in Belgium, 12years in France,
15years in the Netherlands and 25years in Germany;
•
The rents, which are indexed annually, are fixed and are not
tied to resident occupancy rates. In addition, almost all lease
agreements provide an extension option for two consecutive
periods of nine years in Belgium, nine to 12years in France and
ten years in the Netherlands.
Healthcare operators
Bruyères, Letra (FR)
Automne, Villars les Dombes (FR)
Breakdown by operator – in contractual rent (in %)
Belgium
61.9%
Armonea
25.2%
Senior Living Group
19.9%
Senior Assist
9.6%
ORPEA Belgium
4.1%
Other Belgium
3.1%
France
30.3%
Korian/Medica
20.8%
ORPEA
7.0%
Inicéa
2.3%
Other France
0.2%
Germany
1.0%
Celenus
1.0%
Netherlands
6.8%
Bergman Clinics
1.7%
Domus Magnus
1.2%
European Care Residences
1.2%
Stichting Elisabeth
0.8%
Stichting Zorggroep Noordwest-Veluwe
0.7%
Stichting Sozorg & Martha Flora
0.6%
Stichting ASVZ
0.2%
Stichting JP van den Bent
0.2%
Stichting Leger des Heils
0.2%
MANAGEMENT REPORT / PROPERTY PORTFOLIO /
Healthcare real estate
54