Cofinimmo signed an agreement to sell its 95 % stake in Silverstone SA/NV, an Institutional Regulated Real Estate Company.
Silverstone SA/NV owns 20 nursing and care homes in Belgium, operated by the Senior Assist Group.
Cofinimmo has sold its 95 % stake in Silverstone SA/NV to a company of the Senior Assist Group for 92.6 million EUR. Given the other assets and liabilities of the sold company, the transaction values the properties at 134.5 million EUR, 12.7 million EUR above their fair value determined by the independent real estate expert as at 31.12.2014. Over the period during which Cofinimmo owned the assets, Silverstone’s portfolio generated an average annual internal rate of return (IRR) of 8.5 %.
This transaction means the loss of Silverstone SA/NV’s status of Institutional Regulated Real Estate Company.
Considering that Senior Assist is already a 5 % shareholder in Silverstone SA/NV and a 2.62 % shareholder in Rheastone SA/NV, another subsidiary of the Cofinimmo Group, this transaction is between two related parties. However, it was closed under normal market conditions or under conditions more favourable to Cofinimmo’s shareholders than normal market conditions – see appendix.
The sale of Silverstone will allow Cofinimmo to rebalance its healthcare real estate portfolio geographically. The funds raised from this transaction will be used to acquire other properties.