After the acquisition of the senior residences Le Menil in Braine l'Alleud and Home Sebrechts in Molenbeek in 2005, Cofinimmo announces today the acquisition of the residence Home Castel in Jette (Brussels) and the signing of an agreement for the acquisition of a portfolio of 6 other residences all located in Belgium.
On 31.08.2006 the Cofinimmo Group acquired all shares of the real estate company Romim, owner of the senior residence Home Castel. The property, which is located 1 Avenue Comte de Jette in 1090 Brussels, has 90 authorised beds and totalises 4,410 m² above ground. Its investment value (before deduction of debts taken over and latent capital gain tax) amounts to 6.5 million and will generate an indexed initial gross rental yield of 6.15%. Cofinimmo concluded a long lease of 27 years with the Restel Group which will operate this residence.
On 22.09.2006 the Cofinimmo Group has signed an agreement with Senior Living Group SA, under the usual administrative supsensive conditions, regarding the acquisition of all outstanding shares of four real estate companies which jointly own a portfolio of six senior residences: Zonneweelde (in Rijmenam), Zonneweelde (in Keerbergen), Zonnewende (in Aartselaar), Zonnetij (in Aartselaar), Romana (in Laeken) and Seigneurie du Val (in Mouscron). These property assets total 38,316 m² above ground and 992 authorised beds. The investment value of the properties amounts to 71.4 million (before deduction of debts taken over and latent capital gain tax) and will generate an indexed initial gross rental yield of 6.20% for Cofinimmo. These six senior residences will all continue to be run by Senior Living Group with whom Cofinimmo will conclude long leases for a period of 27 years with an option for the lessee to repurchase the properties at the end of the period at the then prevailing market value. The quality of the residences, the scope of activities of Senior Living Group, its expertise and reputation in operating senior residences as well as the contractual and financial structure of the transaction, warrant the solidity of Cofinimmo's counterpart as tenant.
Once this transaction is completed, Cofinimmo will have invested, at an average gross rental yield of 6.30%, a total of 97.8 million in 9 senior residences comprising 1,400 authorised beds and 55,000 m² above ground. Of its total assets 4% will already be allocated to this particular segment, which is considered having a high development potential, as against an objective set in October 2005 of 5%.
New fire station in Antwerp
After a call for tenders for a PPP (public-private partnership), the City of Antwerp has designated Cofinimmo to build and maintain the new fire station located alongside Noorderlaan in 2030 Antwerp. The complex, which will be constructed over the next two years, will comprise the fire station as well as offices for a total of 23,585m². The design and specifications are set by the City.
The City of Antwerp holds a long lease right of 40 years on a plot of land of 21,500 m² owned by a third party and will grant Cofinimmo a sublease of 39 years for the ground. Cofinimmo has entrusted the construction of the building to a general contractor for a fixed price payable at the delivery. Cofinimmo will be responsible for the maintenance of the building. In return, the City of Antwerp will sign a 37-year lease agreement with Cofinimmo by which it will rent the fire station for a yearly rent of 1.701 million, indexed annually at 1.175%. At the end of this 37-year lease contract, the City of Antwerp will automatically acquire the property of the fire station without indemnity.
New building for the Police 'Hekla Zone' in Edegem
After a call for tenders for a PPP, the Police 'HEKLA Zone' (regrouping the communes Hove, Edegem, Kontich, Lint and Aartselaar) designated Cofinimmo to build a new building of 3,800m² on its site at Prins Boudewijnlaan 43 in 2650 Edegem for delivery in the early part of 2008. The construction has been entrusted to a general contractor for a fixed price pay
