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7.9%
28.9%
5.1%
58.1%
15.5
27.8
19.9
5.1
13.9
0
10
20
30
In 2015, Cofinimmo continued its growth in the healthcare real estate segment in line with its strategy
of diversification by country, by operator and by medical specialty. The company was also able to
take advantage of the interest for this type of asset to carry out asset arbitrage.
Favourable legal environment
The investment is based on real needs for growth triggered by the
demographic evolution and new lifestyles. Some care specialisations
are heavily regulated, both at the national and regional levels, which is
a significant obstacle to entry.
Long-term lease contracts with
operators
These lease contracts generally present an initial fixed term of
27 years in Belgium, 12 years in France, 15 years in the Netherlands
and 25 years 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 option to extend the lease for two
consecutive periods of nine years in Belgium, nine to 12 years in France
and 10 years in the Netherlands.
Strong growth potential
Faced with the ageing population and changing lifestyles, the require-
ments in terms of accommodations for dependent or sick elderly
people and healthcare are growing. Cofinimmo supports medical
facility operators in their growth and helps them renovate or enlarge
their property portfolio.
MAIN CHARACTERISTICS
OF THE SECTOR
During 2015, Cofinimmo invested 23.9 million EUR in the Netherlands in
new assets or construction projects. In this country, the company is
particularly interested in the growing segment of medium-sized pri-
vate clinics specialising in uncomplicated medical specialisations. The
company also expanded its portfolio in Germany through the purchase
of two sport and well-being centres in Hanover and Hamburg and a
rehabilitation clinic in Bonn for a total of 83.6 million EUR. Several nurs-
ing and care homes were also delivered to Belgium for an investment
of nearly 26 million EUR.
On certain more mature markets, such as France and Belgium,
Cofinimmo initiated a selective arbitrage policy, which consists in
selling non-strategic assets and reinvesting the collected funds in
other assets that correspond better to the Group’s vision. The criteria
taken into account in the decision to sell a healthcare asset concern
in particular its size, age, location, operational use and the remaining
term of the lease. In 2015, Cofinimmo sold therefore its 95% interest
in the Silverstone company, owner of 20 nursing and care homes in
Belgium, in a transition valorising the properties at 134.5 million EUR,
thus permitting a geographical rebalancing of its portfolio.
HEALTHCARE REAL ESTATE
Geographic breakdown – in fair value (in %)
Netherlands
France
Germany
Belgium
30.6%
Flemish region
18.7%
Brussels and
periphery
8.8%
Walloon region
Provincial towns
7.1%
Paris region
6.2%
Mediterranean coast
5.8%
Rural areas
5.1%
English Channel coast
3.2%
Major cities
1.5%
Average residual lease length by country
(in number of years)
Germany
Belgium
Netherlands
France
Total portfolio
50
Management report /
Healthcare real estate