Aedifica is prepairing to transfer its branch of activities “the apartment buildings segment” into a new subsidairy, which in principle will take the form of an institutional regulated real estate company (“IRREC”) after approval by the supervisory authority. The set-up of this subsidairy and the transfer are expected to take several months.
Aedifica has discussed with several parties the possibility to open up the capital of the future subsidairy to a strategic partner through a sale (in one of the several phases) of maximum 75% (minus one share) of the capital of this subsidiary.
On the 18th of may, Aedifica signed an agreement in principle with one of the candidate-partners for the sale (in one or several phases) in the new subsidiary. This agreement is subject to usual outstanding conditions, such as conducting a due diligence. Within the framework of this agreement in principle, the branche of activities is valuated taking into account the book value of the assets (including the fair value of the buildings) and a portfolio premium of approx. 7% Aedifica believes that the signing of the final agreement and the execution of a first phase of the agreement could tale place in the third quarter of 2018.
This transaction fits perfectly within the strategic development of Aedifica as a pure play healthcare real estate investor and allows Aedifica to pursue its growth in its core activities through this “capital recycling”.