M&A Activity • Jan 19, 2017
M&A Activity
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19 January 2017 – after closing of markets Under embargo until 17:40 CET
Public limited liability company Public regulated real estate company under Belgian law Registered office: avenue Louise 331-333, 1050 Brussels Enterprise number: 0877.248.501 (RLE Brussels) (the "Company")
Stefaan Gielens, CEO of Aedifica, commented: "With this new acquisition in Oude Pekela, Aedifica further expands its Dutch portfolio, which now comprises 12 high quality healthcare real estate sites. This new site is multifunctional and combines a care residence for seniors requiring on-going assistance with a medical centre for the local community. The trend to cluster several care services in a single building has been seen in various countries. The combination of mutually reinforcing or supporting care services does indeed lead to a better risk diversification and an increasing efficiency of the tenants'/operators' operations."
19 January 2017 – after closing of markets Under embargo until 17:40 CET
Aedifica is pleased to announce the acquisition of a new senior housing site in The Netherlands.
Het Dokhuis – Oude Pekela
The Het Dokhuis1 care residence benefits from an excellent location in the centre of Oude Pekela (8,000 inhabitants, Province of Groningen), at approx. 35 km from the city of Groningen. The site was completed in 2016 and comprises a medical centre and a care residence. The medical centre (situated on the ground floor) includes a pharmacy, a general practitioners' office, a physical therapists' office, a psychologists' office and a centre for medical analysis. The care residence (situated on the first and second floors) is a small-scale residential care facility and is oriented toward seniors requiring on-going assistance. It is able to welcome 32 residents.
1 Located Raadhuislaan 41-43-45-47 in 9665 JA Oude Pekela (The Netherlands).
19 January 2017 – after closing of markets Under embargo until 17:40 CET
Aedifica Nederland BV, a 100 % subsidiary of Aedifica SA, acquired on 19 January 2017 the full property of the Het Dokhuis site. The contractual value2 amounts to approx. €5 million.
The operation was financed using Aedifica's credit facilities.
The care residence is operated by Stichting Oosterlengte, a Dutch foundation that has been active in the senior care market in the north of The Netherlands since 2000. Stichting Oosterlengte operates approx. 10 sites and provides several services, including daily home care. The foundation employs approx. 2.000 staff. Aedifica looks forward to this new collaboration with a reputable player in the Dutch care sector.
The medical centre is operated by several tenants.
The lease established for the care residence is an irrevocable double net 15-year long lease. The leases established with the five operators of the medical centre are irrevocable double net leases with a weighted average residual maturity of 14 years.
In accordance with these double net leases, the owner will assume responsibility for the building's insurance costs and local taxes. A part of the building's maintenance costs is borne by the owner as well. However, (complete) maintenance of the building will be covered by the seller for a 10-year period in accordance with a specific management agreement.
The initial gross (double net) yield amounts to approx. 7.5 %.
2 The contractual value complies with the provisions of article 49 § 1 of the Belgian Act of 12 May 2014 on regulated real estate companies.
19 January 2017 – after closing of markets Under embargo until 17:40 CET
Aedifica is pleased to announce completion of phase I of the extension project3 of the Vinkenbosch rest home, located in Hasselt (Belgium).
Extension Vinkenbosch – Hasselt
Phase I of the extension involved the construction of a new rest home with a capacity of 80 units. During phase II, the initial building will be entirely redeveloped into a rest home with 30 units. After phase II (which is expected to start in 2017 and to be completed in 2018), the total capacity of the site will reach 110 units.
Vinkenbosch is well located in a residential area in the centre of Kermt, part of Hasselt (76,000 inhabitants, Province of Limburg). The rest home was acquired in 20154 and is rented out to an entity of the group Senior Living Group (a subsidiary of the Korian Group, a major player in the European senior care market) on the basis of a long lease which generates a triple net yield of approx. 5.5 %. The contractual value of the site upon completion of phase I amounts to approx. €15 million.
3 Located Lindekensveldstraat 56 in 3510 Hasselt (Belgium).
4 See press release of 1 October 2015.
19 January 2017 – after closing of markets Under embargo until 17:40 CET
* * The abovementioned investments demonstrate Aedifica's strategy in the senior housing segment, which aims to strengthen and improve existing sites, as well to develop new projects in partnership with its tenants/operators. This strategy allows the Company to maintain a portfolio of high-quality buildings which generate attractive yields.
*
Other investments are currently under consideration.
***** The English version of this press release constitutes a free translation of the French language text and is made for information purposes only. In case of inconsistency with the French version or inaccuracy of the English translation, the French text shall prevail.
Aedifica is a Regulated Real Estate Company under Belgian law specialised in healthcare real estate, particularly in senior housing. Aedifica has developed a portfolio worth more than €1.4 billion in Belgium, Germany and in The Netherlands.
Aedifica has been quoted on the Euronext Brussels (continuous market) since 2006 and is identified by the following ticker symbols: AED; AED:BB (Bloomberg); AOO.BR (Reuters).
The Company's market capitalisation was €1.0 billion as of 30 December 2016.
Aedifica is included in the EPRA indices.
This document contains forward-looking information that involves risks and uncertainties, including statements about Aedifica's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Aedifica. Should one or more of these risks, uncertainties or contingencies materialise, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, Aedifica does not assume any responsibility for the accuracy of these forward-looking statements.
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