Cofinimmo announced on Monday that it is acquiring 19 nursing homes in France for EUR 144.4mln from French medical group Korian. The investment volume will be financed from existing credit lines and reflects a gross initial yield of 6.55%. The portfolio, including five properties under construction, comprises 1,700 beds over a total area of 85,400 m[sup]2[/sup] mainly in Ile de France, Normandy and the Mediterranean region.
Cofinimmo announced on Monday that it is acquiring 19 nursing homes in France for EUR 144.4mln from French medical group Korian. The investment volume will be financed from existing credit lines and reflects a gross initial yield of 6.55%. The portfolio, including five properties under construction, comprises 1,700 beds over a total area of 85,400 m2 mainly in Ile de France, Normandy and the Mediterranean region.
Cofinimmo, a Belgian real estate investment trust (Sicafi), said the deal, which is expected to close by end-September this year, heralds the permanent establishment of the group in France. In Mid-May Cofinimmo announced that it had begun the process of acquiring SIIC status, the French equivalent of a real estate investment trust, for its French arm.
The deal with Korian will lift the share of the nursing home segment to 19.2% in the Belgian listed real estate group's total portfolio of over EUR2.9bn. France will account for a majority of the nursing home assets, EUR 364mln, while some EUR 254mln worth of nursing homes are in Belgium.
Korian will have 12-year leases on the nursing homes, with an option to renew the leases twice for periods of nine years each.
Cofinimmo already owns other nursing homes operated by Korian following the acquisition of French company Medimur, the owner of clinics and nursing homes in France, for an investment of EUR 229mln in February this year.
Medimur owns 14 aftercare and rehabilitation clinics along with six psychiatric clinics and 12 nursing homes. The 32 care institutions comprise 2,473 beds and total floor space of 128,000 m2. Korian operates 21 of the centres on leases of 6.5 years each , with the other 11 run by Mediter on leases of 11.5 years each. The transaction reflects an initial yield of 6.25%, Cofinimmo said.
Cofinimmo also acquired three Belgian nursing homes for just over EUR 18mln at the same time as the Medimur deal. The three properties are leased for 27 years to the Medibelge Group. The acquisition reflects an initial expected yield of 6.3%.
