Cofinimmo has announced the acquisition of all outstanding shares in Parkside Invest SA, owner of the nursing home Parkside located in 1020 Brussels, rue Général De Ceuninck 75. The existing property was valued at 6.5 million, which is in line with the value determined by the independent real estate expert.
Renovation and extension works of the existing nursing home are currently in progress. The total budget that Cofinimmo will pay for the works is estimated at 10 million. After delivery of the works, expected during Q4 2012, the renovated and enlarged nursing home will total 5,920m² with 135 beds.
As of October 1, 2011, Cofinimmo receives a rental income that will increase at the delivery of the works. The rental income as from the date of delivery divided by the sum of the values of the existing asset and of the works will stand for an initial rental yield1 of 6.50%. This rental income will afterwards be indexed on consumer prices ('health-index').
The nursing home will be operated by the Belgian subsidiary of the French group 'Le Noble Age', with whom Cofinimmo concluded a 27-year lease.
Cofinimmo is very pleased to pursue the diversification of its income in the healthcare property sector by introducing in its portfolio a new operator and a high-quality tenant with an excellent reputation.
Cofinimmo and Le Noble Age have agreed to build another nursing home of about 150 beds on a new site in the Brussels periphery. Cofinimmo will acquire the land, once a building permit is delivered, and will carry out the works. Afterwards, the site will be rented by Le Noble Age under a similar lease to that agreed for Parkside. The building permit request will be filed in the coming weeks.