Le mie ricette per la real estate communityThe Cofinimmo Group recently acquired a nursing and care home in Germany and signed an agreement for the acquisition of a second asset of this kind, which is under construction, for a total amount of 26.5 million EUR. The Group’s investments and commitments in healthcare real estate now total 94.5 million EUR in 2017.
On 12.12.2017, Cofinimmo acquired the ‘Gelsenkirchen Bismarckpark’ nursing and care home, located in Gelsenkirchen, in the Land of North Rhine-Westphalia, for 11.4 million EUR. The facility was built in 1998. It will soon be refurbished to meet the Land’s required standards, i.e. the transformation of double rooms into single rooms. Cofinimmo and the operator will each finance part of the works. The refurbishment budget, including fees and VAT, that will be supported by Cofinimmo is estimated at 1.0 million EUR. Following the refurbishment, the building’s capacity will decrease from 133 to 109 beds.
The Bismarckpark nursing and care home covers an aboveground surface area of 6,466 m². It is operated by Curanum AG München, a subsidiary of the Korian Group, with which Cofinimmo signed a ‘double net’1 lease for a fixed 17-year period, with an option to extend for ten years. The initial gross rental yield amounts to 6.2 %.
On the day before, i.e. on 11.12.2017, Cofinimmo signed an agreement for the acquisition of the ‘Azurit Seniorenzentrum Riesa’ nursing and care home, currently under construction. The asset is located in the town of Riesa, halfway between Leipzig and Dresden, in the Land of Saxony. The asset will count 138 beds spread over an aboveground surface area of 6,450 m². At the time of delivery of the works, which is expected during the second quarter of 2018, Cofinimmo will become owner of the nursing home. It 2
will be let to the operator Azurit Rohr GmbH under a ‘double net’1 lease for a period of 25 years with an option for an additional 5-year extension. Azurit is an important player in the accommodation and care of elderly people in Germany. It already rents Cofinimmo’s asset in Chemnitz2, also located in the Land of Saxony, which was acquired by the Group in 2016. The new acquisition represents an investment of 15.1 million EUR. The initial gross rental yield will amount to 5.7 %.
Both leases will be indexed based on the German consumer price index.
Jean-Edouard Carbonnelle, Chief Executive Officer: “Both transactions are in line with the Group’s strategy to expand our healthcare portfolio in the Netherlands and Germany, where rental yields and lease length form an attractive combination for Cofinimmo and its shareholders. This strategy also aims at spreading risks associated with our tenants’ activities over different countries and markets.
Source : Company