The Cofinimmo Group has announced the acquisition of 100% of the shares of the real estate activity of Van den Brande Group, owner of nine nursing homes as well as a land reserve of 25 hectares which will be used to build or extend at least six homes.
The nine nursing homes today in operation have 809 authorised beds and totalise 46,000 m² above ground. They are located in the provinces Vlaams Brabant (Rotselaar, Boutersem) and Antwerp (Wommelgem, Oud-Turnhout, Rijkevorsel, Beerse, Balen, Geel and Mol).
Next to the existing institutions, Cofinimmo will support financially the construction or extension works of nursing homes in Merksplas (4,148 m²), Ranst (5,181 m²), Oud-Turnhout (2,190 m²), Herentals (8,522 m²), Rotselaar (1,448 m²) and Balen (1,596 m²).
For the end of 2008, the total portfolio of 15 nursing homes will have 1,152 authorized beds and totalize an investment value of €105.92 million. Those assets will generate an indexed initial gross rental yield of 6.30% for Cofinimmo.
In this transaction, Cofinimmo also acquires a land reserve allowing the construction of new projects and extensions. As such, extension projects are already being studied today for Boutersem and Geel, for a total of 73 additional beds.
These nursing homes, as well as the possible new institutions to be built on the land reserve, will all be operated by Palmir SA, with whom Cofinimmo has concluded long leases for a period of 27 years. Palmir is the company through which the Van den Brande family will pursue its commitment to the nursing home sector.
The quality of the residences, the scope of activities of Palmir SA, its expertise and reputation in operating nursing homes as well as the contractual and financial structure of the transaction, guarantee the solidity of Cofinimmo's tenant.
By welcoming this operator as a new tenant next to the two existing nursing home operators in Cofinimmo's portfolio, Cofinimmo is further improving its counterpart risk in this sector.