Since 16.06.2017, the Cofinimmo Group counts an additional German nursing and care home in its portfolio. It acquired the Christinenhof residence in the heart of the city of Lüneburg (Lower Saxony) for €12.6m. This acquisition brings the fair value of its entire German portfolio to €129.5m.
The newly acquired asset was built in 2001. It has an aboveground surface area of 6,100 m² and offers 140 beds.
The property is currently leased to a subsidiary of the Korian Group. The latter is the foremost European provider of accommodation and care services for elderly people and is since long one of Cofinimmo’s main partners-tenants in France, Belgium and, as from now also in Germany.
The current rent, based on a ‘double net’1 lease contract, represents an initial gross rental yield of 6.0 % on the investment. The rent will be indexed on the basis of the German consumer price index. The current lease contract will soon be replaced by a new lease contract of the same type for a 17-year period. Renovation works of approximately €300,000 are planned.
Jean-Edouard Carbonnelle, CEO Cofinimmo : “This new acquisition of a very well-located high-quality building is in line with the growth strategy of our healthcare portfolio in Germany. We continuously analyse healthcare real estate investment opportunities with the ambition to bring to 50 % the share of this segment in the global portfolio by the end of 2019.”
