Cofinimmo continues its expansion in Germany

The Cofinimmo group (Euronext Brussels: COFB) acquired approximately 95% of the shares of the company owning Celenus Klinik an der Salza, a rehabilitation clinic in Bad Langensalza, in the Land of Thuringia. The conventional value of the asset for the calculation of the share price amounts to approximately 22 million EUR. The asset is already operated by the Orpea group.

Jean-Pierre Hanin, CEO of Cofinimmo: “The acquisition of this renowned rehabilitation clinic fits perfectly within our growth strategy in the German healthcare real estate sector. Moreover, it enables us to further reinforce our partnership with the Orpea group, a major player in the European healthcare sector with which we already have a long-standing partnership in Germany and in other countries where our group is active.”

The site

Celenus Klinik an der Salza is located in Bad Langensalza, a city of about 17,500 inhabitants in the Land of Thuringia, in the centre of Germany. The city is known for its thermal baths, its gardens and forest and its historical city centre. Built in 1998, the site has a surface area of more than 11,000 m² and offers 206 beds. The complex consists of a main building and several smaller adjacent buildings. The clinic also has a sports hall, a swimming pool as well as several technical rooms dedicated to the different therapeutic programmes offered on site for orthopaedic, psychosomatic and osteological pathologies.

For psychosomatic treatment, the clinic receives patients from the whole of Germany. For orthopaedic and osteological treatment, 90% of the patients come from an area of approximately100 km around Bad Langensalza, totalling approximately 4.5 million inhabitants. The rehabilitation clinic is located in a green area and is easily accessible thanks to several high ways and bus lines. In addition, the building also has a good energy performance.

The transaction

Cofinimmo acquired, through a subsidiary, approximately 95% of the shares of the company owning a rehabilitation clinic in Bad Langensalza, in the Land of Thuringia. The conventional value of the asset for the calculation of the share price amounts to approximately 22 million EUR. This acquisition was not included in the 2021 investment programme as published in section 11.1 of the press release dd. 28.04.2021.

A ‘Dach&Fach’ lease contract has been signed for a fixed term of 15years with Orpea, which is already operating the site. The rents will be indexed. The gross rental yield is in line with current market conditions.

The operator

Founded in 1989, the Orpea group is a leading European operator in dependency care. Active in 23 countries, the group manages 1,114 facilities, having together a capacity of more than 111,000 beds, and employs more than 68,000 people. In Germany, the group operates 191 facilities, going from nursing and care homes to day centres, rehabilitation and mental health clinics. The facilities are spread over the German territory and offer together more than 20,500 beds.

Care Property Invest expands its Spanish property portfolio

Care Property Invest finalised the purchase of its third Spanish project, ‘Emera Mostoles’, a yet to be developed residential care centre in Mostoles (Madrid). The project will be built by Alta Real Estate S.L. (part of the Habescon Immobiliaria group) and upon completion, expected in Q2 of 2023, will comprise 148 rooms. The total investment value for the construction of this residential care centre is estimated to be approximately €12 million.

Care Property Invest is entering into its third partnership with French healthcare operator Groupe Emera, Europe’s seventh largest elderly care provider. This transaction is part of Care Property Invest’s strategic growth plan in this market. Peter Van Heukelom, CEO of Care Property Invest says: ‘With the construction of this residential care centre our team continues to work on the further expansion of our Spanish healthcare real estate portfolio, which now includes 3 projects. We also look forward to strengthening our partnership with leading healthcare operator Emera.’

The site

The new residential care centre will be built in Mostoles, a suburb of Madrid (also situated in the Autonomous Community of Madrid). The building will have five floors (one ground floor and four upper floors) and will have 148 private rooms. The residential care centre will have its own doctor’s practice, physiotherapy practice, hairdresser’s salon and pedicure room. There will be a cosy restaurant on the ground floor and a beautiful garden with a terrace outside.

‘Emera Mostoles’ is located near a supermarket and only 1 km away from restaurants, shops, banks etc. The centre of Mostoles is 3 km away and the centre of Madrid is 20 km away. The project is easily accessible by car via the A5, M50 and M506 motorways andby public transport thanks to a bus stop 350 m away.

The transaction

After receiving the necessary permits, Care Property Invest purchased the land of this project through its Spanish subsidiary Care Property Invest Tulip S.L., on which Alta Real estate S.L. (part of the Habescon Immobiliaria group) will now build the residential care centre.

The construction works are financed in instalments by the Company, according to the progress of the works. These construction works have now started and the completion of the entire project is foreseen in Q2 of 2023. For the operation of this project, the Company concluded a new long-term lease agreement of the ‘triple net’type (renewable and annually indexable) with a minimum duration of 15 years with a subsidiary of Groupe Emera.

The operator

With 81 establishments of which 69 nursing homes in 7 European countries and more than 7 750 beds in its portfolio, the French healthcare operator Groupe Emera is the seventh largest player for elderly care in France and in Europe. They are currently active in France (54 establishments of which 42 nursing homes), Spain (13 nursing homes), Belgium (5 nursing homes), Luxembourg (1 nursing home), Switzerland (1 nursing home), Italy (2 nursing homes) and Ireland (5 nursing homes). Group Emera took its first steps on the Spanish market in 2017 and currently operates 13 sites with approximately 1 850 beds. The Emera Group has several new projects to be opened in the coming months.

Europa Capital invests in senior living sector

Europa Capital’s current sector of choice is residential and not just the private rented sector. The company has recently acquired a senior living asset near Copenhagen for a value-add fund, for instance.

“I think that’s a sector that is really moving up the priority list, even for core investors who are under pressure to produce more return than regular residential or regular logistics can give these days,” said Europa Capital partner Andy Watson.

Although Europa Capital has done deals in both Berlin and Copenhagen recently, Watson said that asset selection is less a case of geography and more a case of finding a good local partner in these sectors.

Meanwhile, he said that retail assets are still “challenged” and the sector is more of a value-add play. But while covid-insecure assets are the worst off, grocery retail has been relatively unscathed. Retail parks, particularly if they are food anchored can also be interesting Watson told Real Asset Insight’s Richard Betts.

Source: Real Insight – Real Asset Insight

Aedifica invests €22million in 5 care properties in Finland

Aedifica invests €12.5 million in the acquisition of a portfolio of 3 care properties in Kokkola (Finland). Stefaan Gielens, CEO of Aedifica, commented: “Aedifica is very pleased to announce that Hoivatilat further expands our Finnish healthcare real estate portfolio. We will invest a total amount of approx. €22million in the acquisition of three fully operational care properties and the development of two new projects, accommodating a total of 261 residents and children. We look forward to continuing to invest in futureproof healthcare real estate with our Finnish Hoivatilat team.” Jussi Karjula, CEO of Hoivatilat, commented: “As part of the Aedifica group, our strategy also includes the acquisition of high-quality fully operational care properties, in addition to our own active project development work. I am pleased with the acquired assets and new development projects, which complement our current portfolio nicely. Together we are creating a better society.”

Description of the sites

The 3 care properties are located in Kokkola (48,000 inhabitants) and were built between 2011 and 2016. Ilkantie 1 is located in the centre of Kokkola and accommodates 56 elderly people and 17persons with a disability requiring continuous care. The Metsämäentie 62 and Kärrytie 1 care homes are located in the proximity of the city centre and are specifically tailored to suit the needs of elderly people requiring continuous care, accommodating 26 and 23 residents respectively.

Description of the operators and the leases

97 units of this portfolio are operated by Attendo, an established private player in the Finnish elderly care sector that currently operates approx. 13,000beds. The Attendo group has almost 40 years of experience in the healthcare sector and is the largest private care service provider in the Nordics, employing over 24,000 staff in more than 700 locations. The group already operates 29 Aedifica sites.

17 units of this portfolio are operated by Soite. Soite is a public operator of several municipalities operating in the Central Ostrobothnia region. It offers primary and specialized health care services and social services. Soite was established in 2017 and employs 3,800 people.

8 units of this portfolio are operated by Kårkulla. Kårkullais a public operator that provides support and services to people with intellectual and other disabilities and their families. Kårkulla consists of 33 bilingual municipalities and provides services throughout the Swedish speaking regions in Finland. Kårkulla has approximately 1,000 employees.