Cofinimmo finalized the disposal of five healthcare assets in France to Health Property Fund 1, a non-listed investment fund managed by BNP Paribas REIM France.
The total net sales price stood at €41.4 million. This price is above the acquisition value of the assets (acquisitions in 2008 and 2009), and is in line with the investment value of the assets as determined by the real estate expert at 31.12.2013.
Over the period during which it owned the assets, Cofinimmo realized an average annual Internal Rate of Return (I.R.R.) of 7.20%.
Cofinimmo had already sold a psychiatric clinic and an EHPAD in France during the first half of this year. Jean-Edouard Carbonnelle, CEO: “In almost ten years, we have built a healthcare real estate portfolio comprising 129 sites and amounting to €1.2 billion. We wish to extend to this portfolio the selective arbitrage policy that we have been applying to our office portfolio for years. This policy consists in selling non-strategic assets and in reinvesting the collected funds in other assets which are better aligned with the Group vision, and namely new constructions.” The criteria taken into account when deciding to sell a healthcare asset are namely its size, its age, its location, its operation and the residual lease length.