On 01.08.2016, the Cofinimmo Group acquired the medical office building Oranjeplein, located in Goirle, near Tilburg, in the Netherlands. The investment amounted to 4.5 million EUR.
The building was renovated in 2013 and has a surface area of 1,844 m2. It is fully occupied by several medical and paramedical professionals (physicians, pharmacists, physiotherapists, dentists). Each professional is a tenant of the Cofinimmo Group under a ‘double net’1 lease contract,
indexed annually. The weighted average residual lease length amounts to seven years. The gross initial rental yield stands at 7.48 %.
Cofinimmo signed a collaboration agreement with a local third party for the very specific commercial management of this asset. This specialised bureau has the mission to maintain the occupancy rate at an optimal level over the long term, whilst ensuring the complimentary of professions represented in the centre, for the benefit of both the patients and the professionals working there.
A portfolio of office buildings in Brussels
On 05.08.2016, Cofinimmo purchased the shares of four companies, each owner of an office building in Brussels.
The acquired property portfolio, representing a total above-ground surface area of 22,959 m2, consists of three buildings located in the heart of the Brussels’ European district and one in the decentralized area of Brussels. The average occupancy rate of the premises amounts to 88 % and the average weighted residual lease length is 3.3 years until the first break option for the tenants, and 5.8 years until the end of the leases. The four buildings are occupied by several high-quality tenants.
The transaction values the buildings at 57.9 million EUR, an amount in line with their investment value as determined by the independent real estate expert. This corresponds to an investment value, parking spaces excluded, of 2,100 EUR/m2. The ‘double net’ gross rental yield stands at 6.41 % today and could reach 7.43 % in case of full occupation. The passing rents of the four buildings are lower than the theoretical rents estimated by the real estate expert. All this means that the portfolio offers a significant value creation potential.