Belgian listed property company Cofinimmo said it has agreed to buy French company Medimur, the owner of clinics and nursing homes in France, for an investment of EUR 229 mln. As it bolsters its healthcare property investments, the company said it is also purchasing three more nursing homes around Brussels for EUR 18.6 mln.
Belgian listed property company Cofinimmo said it has agreed to buy French company Medimur, the owner of clinics and nursing homes in France, for an investment of EUR 229 mln. As it bolsters its healthcare property investments, the company said it is also purchasing three more nursing homes around Brussels for EUR 18.6 mln.
Cofinimmo said 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 and are operated by the Korian (21 institutions) and Méditer groups (11 institutions). The leases have average residual terms of 6.5 years (Korian) and 11.5 years (Méditer). This portfolio has an initial yield of 6.25%, Cofinimmo said. The Belgian assets acquired have an initial expected yield of 6.3% and are leased for 27 years to the Medibelge Group.
With the Medimur deal, Cofinimmo also gains a foothold in the French market, where it says it plans to set up a management and development structure and apply for the status of Société d’Investissement Immobilier Cotée (SIIC), France’s REIT regime. As a prelude to that, Cofinimmo said it would seek a listing on Euronext Paris during the course of 2008.
Separately, Cofinimmo said it is proposing a dividend of EUR 7.75 per share on 2007 earnings, a 4.7% rise on the previous year. Brussels-based Cofinimmo said it expected its net current result per ordinary share, excluding the impact of the accounting rule IAS 39, to be around EUR 8 for 2008. Its net current result for 2007, non-cash impact of IAS 39 excluded, amounts to EUR 9.11 per ordinary share, exceeding its own forecast of EUR 9 and 8.5% higher than in 2006. The net current result including the IAS 39 impact stood at EUR 8.2 per ordinary share, down 5.6% on 2006.
As of December 31, 2007, the total estimated investment value of Cofinimmo’s consolidated property portfolio amounted to EUR 2.9 bn. Its portfolio comprised of total rental area of 1,394,400 m2 above ground. The vast majority, or 77%, of the assets consist of offices while nursing homes represent 8.1% and Pubstone, its pub assets,14.9% of the portfolio. With the latest acquisitions in France and Belgium, clinics and nursing homes now represent 15.3% of its total portfolio.