Aedifica : invests £29 million in the construction of two care homes in the United Kingdom - 24/03/2022

PRESS RELEASE

1 April 2022 - after closing of markets

Under embargo until 17:40 CET

AEDIFICA

Public limited liability company

Public regulated real estate company under Belgian law

Office: Rue Belliard 40 (box 11), 1040 Brussels Enterprise number: 0877.248.501 (RLE Brussels)

(the 'Company')

Acquisition of a care site in the Netherlands and construction of a care home in the United Kingdom

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Acquisition and renovation of a care site in Oosterbeek (NL) through Aedifica's joint venture with Dunavast-Sonneborgh

• - Investment: approx. €7 million

• - Capacity: 27 residents

• - Initial gross rental yield: approx. 5.5%

• - Operator: Warm Hart

• - Expected delivery date: Q4 2022

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Acquisition of a care home to be constructed in Dawlish (UK)

• - Investment: approx. £13 million

• - Capacity: 71 residents

• - Initial net rental yield: approx. 6.5%

• - Operator: Maria Mallaband Care Group

• - Expected completion: Q4 2023

1. Aedifica and Dunavast-Sonneborgh will invest approx. €7 million in the acquisition and renovation of a care site in Oosterbeek

Oosterbeek (impression) - Oosterbeek

Stefaan Gielens, CEO of Aedifica, commented: "Aedifica and Dunavast-Sonneborgh are expanding their joint venture's portfolio in the Netherlands and will invest approx. €7 million in the acquisition and renovation of a care site in Oosterbeek. After the renovation, the care site will provide a new home for 27 elderly people requiring continuous care. This project also marks the start of the collaboration with Warm Hart, a new elderly care provider. The renovation of the care site is expected to be completed in the fourth quarter of 2022."

Description of the site

The care site1 is located in a green area of Oosterbeek, part of the municipality of Renkum (31,000 inhabitants, Province of Gelderland). The existing building will be entirely renovated into a modern residential care facility for seniors requiring continuous care accommodating 27 residents. Renovation works will start in the second quarter of 2022 and are expected to be completed in the fourth quarter of 2022.

Description of the transaction

On 1 April 2022, Aedifica and Dunavast-Sonneborgh acquired ownership of the site through their joint venture (in which Aedifica holds a 75% stake). The total investment2 (including acquisition of the site and renovation works) will amount to approx. €7 million.

Description of the operator and the lease

The care site will be operated by Warm Hart, a Dutch care provider active in the senior care sector since the beginning of 2022. The co-founders of the company already have more than 25 years of experience in the healthcare and hospitality services. Warm Hart specialises in high-quality care and offers a range of services for residents (elderly care, disability care, hospice care, etc).

The care site will be let on the basis of a new irrevocable 20-year triple net lease. Upon completion of the renovation works, the initial gross rental yield will amount to approx. 5.5%.

• 1 Address: Johannahoeve 2-4, 6861 WJ Oosterbeek (Netherlands).

• 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.

2. Aedifica will invest approx. £13 million in the construction of a brand-new care home in Dawlish (United Kingdom)

Dawlish (impression) - Dawlish

Stefaan Gielens, CEO of Aedifica, commented: "We are very pleased to announce that Aedifica will invest approx. £13 million in the development of a brand-new purpose-built care home in Dawlish. This purpose-built care property will comprise 71 en-suite bedrooms for seniors requiring continuous care. We look forward to continuing to develop and invest in future-proof healthcare real estate with our British team."

Bruce Walker, Country Manager of Aedifica UK, adding: "Construction of the care home is expected to be completed in the fourth quarter of 2023. We are pleased to deepen our successful ongoing relationship with MMCG, a longstanding tenant with a proven operating model that already operates fifteen Aedifica sites."

Description of the site

The project3 will be developed in Dawlish (13,000°inhabitants, County Devon). The care home will accommodate 71 residents in spacious bedrooms with en-suite facilities that are specifically tailored to suit the needs of elderly people requiring continuous care. The building will use energy efficient systems, such as high efficiency condensing boilers and low energy lighting, which should result in an 'A' EPC rating upon completion of the works, contributing to the continued improvement of the sustainability of Aedifica's real estate portfolio. Construction is expected to be completed in the fourth quarter of 2023.

Description of the transaction

On 1 April 2022, Aedifica acquired a 25% stake in the British real estate company which has ownership of the plot of land. Upon completion of the building in 2023, Aedifica will acquire full ownership of the completed property by taking control of the remaining shares in the company. Aedifica's total investment4 will ultimately amount to approx. £13 million.

Description of the operator and the lease

The care home will be operated by the Maria Mallaband Care Group. MMCG is a provider of high quality residential and dementia care operating over 80 care homes across the UK. MMCG already operates 15 sites of Aedifica's portfolio. As announced on 17th February5, we will open an additional care home of 61 beds in Market Drayton for which the construction works will start in Q4 2022.

The care home will be let on the basis of a new irrevocable 30-year triple net lease. Upon completion of the works, the initial net yield will amount to approx. 6.5%.

• 3 Address: Exeter Road, Dawlish, EX7 0NR (United Kingdom).

• 4 The contractual value complies with the provisions of article 49 § 1 of the Belgian Act of 12 May 2014 on regulated real estate companies.

• 5 See press release of 17 February 2022