The Cofinimmo Group sets a foothold in the German healthcare sector through the acquisition of a revalidation clinic located in the spa resort of Baden-Baden, in southwest Germany.
The facility has a surface area of 4,376m² and is comprised of 46 revalidation rooms, physiotherapy spaces, gyms, a pool and a sauna. It is operated by the private German group Celenus, whose development could lead to other opportunities for Cofinimmo. The group specializes in revalidation and psychological care and manages a total of 2,600 beds spread over 15 sites, all located in Germany.
The Cofinimmo Group bought the asset for €10.91 mln and rents it to the operator Celenus under a 25-year lease. The lease contract is of the “double net” type: it stipulates that the landlord is responsible for the repair and replacement of the boilers, as well as the maintenance of the outer shell of the building (walls, window frames, roof), the rest of the maintenance obligations being with the tenant.
The rent will be indexed annually, at 50% of the consumer price index. The expected initial rental yield is 7.64%. The exceptional location makes the investment even more interesting for Cofinimmo. Jean-Edouard Carbonnelle, CEO of Cofinimmo: “After Belgium, France and the Netherlands, Cofinimmo extends its healthcare portfolio to Germany. The Group’s ambition is to increase its presence there and to partner with new operator tenants. This is in line with the Group’s announced strategy, which consists in diversifying its healthcare portfolio from a geographical viewpoint.”
This geographical diversification is intended to minimize the risks linked to possible legislation changes related to reimbursements in healthcare or the accommodation of elderly people, which could affect the operator tenants of the buildings.