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Accomplishments
Acquisition of an SSR clinic to be renovated and extended
in Néville (France)
On 31.07.2014, Cofinimmo acquired the Caux du Littoral SSR clinic
in Néville (FR). The existing site will be renovated and extended by
July 2015. On delivery of works, the “triple net” lease (maintenance
costs, including structural maintenance, are the responsibility of
the tenant) concluded with the operator Handra, will take effect for
a term of 12 years.
The acquisition price of the land and existing constructions and
the budget for the renovation and extension works stands at a
total of €5.2 million excluding VAT. Half of this amount was paid by
Cofinimmo on 31.07.2014. The balance will be paid as the works
progress. The initial rental yield is expected to stand at 7.50%.
Handra is a private French group with 150 employees. It operates
158 beds spread over four EHPAD and SSR sites in France. The
Group focuses on small structures (25 to 60 beds) to be renovated,
located in wealthy areas.
Acquisition of a rehabilitation clinic in Baden-Baden
(Germany)
On 03.12.2014, Cofinimmo acquired a rehabilitation clinic in the spa
resort of Baden-Baden, in the southwest of Germany.
The 4,367m² facility has 46 rehabilitation rooms, recovery suites,
gymnasia, a swimming pool and a sauna. It is operated by Celenus,
a private German group. This operator specialises in rehabilitation
and psychological care and manages a total of 2,600 beds spread
over 15 sites, all located in Germany.
Cofinimmo acquired the asset for €10.9 million and leases it under
a 25-year lease agreed with Celenus. The lease is “double net”,
meaning that the repair and replacement of boilers, as well as the
maintenance of the building’s external shell (walls, framework and
roof) are the responsibility of the owner. Other maintenance obliga-
tions are the tenant’s responsibility. The rent will be indexed at 50%
of the consumer price index each time the index increases by 5%.
The initial rental yield is expected to stand at 7.64%.
Acquisition of a plot of land for the construction of a
medical office building in Eindhoven (Netherlands)
On 11.12.2014, the Cofinimmo Group acquired a plot of land in
Eindhoven in the Netherlands. This will be used for the construction
of a medical training and research centre. The cost of the land and
the budget of the works amount to a total of €4.5 million. The future
facility will have a surface area of 2,237m² and will be operated
by the foundation SGE (Stichting Gezondheidscentra Eindhoven).
SGE manages several medical and paramedical centres in the
Eindhoven region, specialising in primary care, dentistry and
physiotherapy.
At the delivery of the works, scheduled for November 2015,
Cofinimmo will sign a “double net” lease with SGE for a 25-year
term.
The initial rental yield is expected to stand at 7.50%. The rent will be
indexed annually at the consumer price index.
Acquisition of a portfolio of 13 healthcare facilities in
the Netherlands
On 17.12.2014, Cofinimmo acquired a portfolio of 13 new or to-be-built
healthcare facilities from Green Real Estate B.V., a subsidiary of the
Dutch group Zeeman.
Cofinimmo acquired these facilities, with a total surface area of
almost 36,500m², for a gross contractual amount of €71.9 million.
All the assets have an excellent location. The required permits were
delivered for the construction projects. They are leased for a 15-year
term under “double net” leases to 11 different private or non-profit
operators specialising in geriatrics, psychiatry, and assistance for
disabled people.
The initial gross rental yield of this transaction stands at 7.46%. The
rent will be indexed annually at the consumer price index.
Sale of the La Gaillardière psychiatric clinic in Vierzon
(France)
On 27.03.2014, Cofinimmo, via its French subsidiary Domaine de
Vontes, sold the La Gaillardière psychiatric clinic in Vierzon (FR) for
a gross amount of €1.6 million, in line with the asset’s investment
value as determined by the independent real estate expert at
31.12.2013. The Group’s decision to sell was based on the age of the
property, its modest size and its operation by a local operator.
Favourable legal environment
Strong growth potential
Long-term leases with operators
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MANAGEMENT REPORT / PROPERTY PORTFOLIO /
Healthcare real estate
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