Aedifica announces several extensions and renovations of its current senior home sites for a total amount of € 27m. The contributions can be expected as of mid-2015 as not all development permits have been obtained yet. Hold rating and € 47.5 TP maintained.
News:
Aedifica announces several extensions and redevelopments of its healthcare assets in Belgium.
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Pont d’Amour:The current rest home which was completed in 2012 (and already included the relocation of beds out of another senior house), will be extended, bringing the capacity from 74 beds to 150 beds. The development permit has been obtained and completion is expected by mid-2015. The investment budget is estimated at € 8m, triple net yield at approx. 6% and the lease will be extended to 27 years as of project delivery.
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Au Bon Vieux Temps: Additionally to the 43-bed rest home, the site included also a villa. Following the demolition of the villa, the available plot of land will allow for a construction project of a new rest home for which an investment budget of € 7m had already been approved. This project is now reviewed and will be extended. Eventually, the site will consist of a new building comprising 69 nursing care beds and 29 serviced apartments and theexisting rest home building will be reassigned or is subject to redevelopment. Hence, the new budget is estimated at € 10m. The lease will be extended to 27 years as of project delivery and the new triple net yield will amount to approx. 6%. The request for the development project has not been approved yet. We bank on project delivery at the earliest by end 2015.
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Résidence l’Air du Temps: This rest home, acquired in 2008, comprises 88 beds. On June 27, Aedifica acquired a plot of land next to this home in order to realise an extension of 14 rooms and 33 serviced apartments. The total investment budget is estimated at € 6m. The lease will be extended to 27 years as from the date of completion. The triple net yield will amount to approx. 6%. The application to obtain a development permit still needs to be submitted. We bank on project delivery in 2016.
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Op Haanven: This rest home includes 87 beds and 3 serviced apartments. The proposed construction and renovation project consists of the renovation of the existing building and an extension in order to improve the overall quality. The investment budget is estimated at € 3m and the new triple net yield at approx. 6%. An application to obtain a development permit will be submitted shortly.
Our View & Conclusion:
Since the € 100m capital increase of December 2012, Aedifica has announced € 74m of projects (€ 19m of marketable investment properties of which € 8m subject to conditions and € 55m of development projects). This announcement gives the impression of appeasing the market after the rights issue, as expectations are high. Note that most permits have not yet been obtained and therefore contributions are only expected at the earliest by mid-2015. Hold maintained.