Cofinimmo expands German healthcare portfolio with €170m deal

Belgian listed landlord Cofinimmo has strengthened its presence in Germany’s healthcare sector by acquiring a portfolio of 17 nursing and care homes valued at €170 mln.

Cofinimmo has signed a 30-year lease with operator Stella Vitalis for the assets, which provide a total of 1,500 beds over a total area of 75,000 m2. The initial gross rental yield is 5.5% and the rents are linked to the German consumer price index. 

The seller is a joint venture of Revcap, a leading European private equity house that has invested over €2 bn of equity in real estate across more than 375 transactions. Cofinimmo is acquiring a 94.9% stake in 14 companies that own the properties.

The deal reflects growing activity in the healthcare sector, following AXA IMRA’s announcement on Wednesday that it had acquired a portfolio of eight care homes in Paris valued at around €250 mln from GDP Vendome Group.

Cofinimmo said the deal brought it close to its target of taking the share of its global portfolio represented by healthcare to 50% by the end of 2019. The group’s German healthcare real estate portfolio now spans 28 sites and has a fair value of around €330 mln. Cofinimmo also owns assets in Belgium, France and the Netherlands with a total AUM of €3.4 bn.

Jean-Pierre Hanin, CEO of Cofinimmo, said: ‘This is the most important transaction so far for Cofinimmo in Germany and it represents a major step in our development on this market.’


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