Aedifica : invests €48 million in 2 Dublin care homes (IE) - 01/10/2021

PRESS RELEASE

1 October 2021 - before opening of markets

Under embargo until 07:30 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')

Aedifica invests €48 million

in 2 Dublin care homes

• Acquisition of a care home to be constructed and acquisition of a fully operational care home (with potential for future extension), both located in the Greater Dublin Area (Ireland)
• • Total investment: approx. €48 million
  • Total capacity: 185 residents
  • Operator: Virtue (part of the Emera Group)
  • Expected delivery date of development project: Q3 2023

Name	Type	Investment	Pipeline	Capacity	Initial net rental yield
		(in € million)	(in € million)	(units)
Dublin Stepaside	Development	5	25	119	5.5%
Altadore Nursing Home	Acquisition	18	-	66	5%
Total		23	25	185

Stefaan Gielens, CEO of Aedifica, commented: "Aedifica continues to expand its healthcare real estate portfolio in Ireland by investing a total amount of approx. €48 million in the construction of a brand- new care home and the acquisition of a fully operational care home with potential for future extension. Both properties are located in the Greater Dublin Area and will accommodate up to 185 elderly people requiring continuous care. Thanks to this transaction, we strengthen our position and visibility in the Irish market. Since our first investments in Ireland in February 2021, we increased our portfolio to nearly €140 million upon completion of all development projects. In addition, we continue to expand our collaboration with the Emera Group, an established European care operator with a proven operating model."

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PRESS RELEASE

1 October 2021 - before opening of markets

Under embargo until 07:30 CET

1. Acquisition of a care home to be constructed in Dublin (IE)

Aedifica invests approx. €30 million in the construction of a care home in the Greater Dublin Area (Ireland).

Dublin Stepaside (impression) - Stepaside

Description of the site

The care home1 will be constructed in the centre of Stepaside, part of the Greater Dublin Area (1,900,000 inhabitants, County Dublin), approx. 15 km from Dublin City centre. It will accommodate up to 119 residents in spacious bedrooms with en-suite facilities that are specifically tailored to suit the needs of elderly people requiring continuous care. Contributing to the continued improvement of the sustainability of Aedifica's real estate portfolio, the building will use energy-efficient systems, which should result in an 'A' Building Energy Rating2 (BER). Subject to outstanding conditions (which should be satisfied within the coming weeks), construction works will start in the first quarter of 2022 and are expected to be completed in the third quarter of 2023.

1. Address: Stepaside Lane 60-63, Kilgobbin, Co. Dublin (Ireland).
2. Equivalent to an Energy Performance Certificate (EPC).

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PRESS RELEASE

1 October 2021 - before opening of markets

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Dublin Stepaside (impression) - Stepaside

Description of the transaction

On 23 August 2021, Aedifica acquired ownership of the plot of land. The contractual value amounts to approx. €5 million. Aedifica has budgeted approx. €25 million for construction works. Total investment3 will therefore amount to approx. €30 million.

Description of the operator and the lease

The care home will be operated by Virtue, an established player with a solid track record and a management team that has over 35 years of experience in the Irish elderly care sector. Virtue currently operates nearly 1,000 beds in 10 care homes in Dublin, the North-East and South of Ireland. Virtue is actively expanding its operations throughout Ireland and plans on opening additional care homes in the near future.

Virtue is part of the Emera Group, a private operator with more than 30 years of experience in the elderly care sector. The Emera Group employs approx. 4,000 staff in 88 care homes across 7 countries, providing high-quality care to approx. 8,200 elderly people who are no longer able to live independently at home. The group already operates 6 Aedifica sites in Belgium and Ireland4.

As is customary in Ireland, the care home will be let on the basis of a new irrevocable 25-year triple net lease that is fully indexed to the consumer price index (CPI). Upon completion of the works, the initial net rental yield will amount to approx. 5.5%.

1. 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. See press releases of 17 December 2020, 15 February 2021 and 12 March 2021.

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PRESS RELEASE

1 October 2021 - before opening of markets

Under embargo until 07:30 CET

2. Agreement for the acquisition of a fully operational care home in Dublin (IE)

Aedifica invests approx. €18 million in the acquisition of a fully operational care home (with potential for future extension) in the Greater Dublin Area (Ireland).

Altadore Nursing Home - Glenageary

Description of the site

Altadore Nursing Home5 is located in a residential area in Glenageary, part of the Greater Dublin Area, approx. 15 km from Dublin City centre. This care home is a former villa dating from 1990 that was entirely redeveloped into a modern, high-end care facility. It accommodates up to 66 residents in spacious bedrooms with en-suite facilities that are specifically tailored to suit the needs of elderly people requiring continuous care. The site offers potential for future extension.

5 Address: Upper Glenageary Road, Glenageary, Co. Dublin (Ireland).

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Altadore Nursing Home - Glenageary

Description of the transaction

On [30] September 2021, Aedifica signed the agreement for the acquisition (subject to outstanding conditions, expected to be satisfied in the coming weeks) of 100% of the shares in the Irish real estate company that owns the site. The contractual value6 amounts to approx. €18 million.

Description of the operator and the lease

The care home is operated by Virtue, part of the Emera Group (see page 3).

As is customary in Ireland, the care home is let on the basis of a new irrevocable 25-year triple net lease that is fully indexed to the consumer price index (CPI). The initial net rental yield amounts to approx. 5%.

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

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