Aedifica : invests €7.5 million in a care home in Mühlhausen (DE) - 25/03/2022

PRESS RELEASE

4 April 2022 - 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 €126 million1 in two portfolios:

- £58 million in a portfolio of 5 care homes in Jersey and the Isle of Man - €57 million in 3 care homes in Ireland

-

Acquisition and extension of a portfolio of 5 care homes, of which 4 are located in Jersey and 1 on the Isle of Man

• - Total investment: approx. £58 million (approx. €69 million)

• - Total capacity: 283 residents

• - Initial net rental yield: approx. 6 %

• - Operator: LV Care Group (part of the Emera Group)

-

Acquisition of a portfolio of 3 new-build care homes in Ireland

• - Total investment: approx. €57 million

• - Total capacity: 346 residents

• - Initial net rental yield: approx. 5%

• - Operator: Silver Stream Healthcare

1 Amounts in £ were converted into € based on the exchange rate of the transaction date.

1. Aedifica invests £58 million in a portfolio of 5 care homes, of which 4 are located in Jersey and 1 on the Isle of Man

Le Petit Bosquet - Jersey

Stefaan Gielens, CEO of Aedifica, commented: "We are very pleased to announce that Aedifica continues the expansion of its healthcare real estate portfolio with the acquisition of a large portfolio of 5 fully operational care homes, of which 4 are located in Jersey and 1 on the Isle of Man for approx. £58 million. Thanks to this acquisition, we continue to expand our collaboration with the Emera Group, an established European care operator with a proven operating model."

Bruce Walker, Country Manager of Aedifica UK, adding: "The properties are located in Jersey and the Isle of Man and will, after completion of the envisaged extension and reconfiguration works, comprise 283 en-suite bedrooms for seniors requiring continuous care. This transaction will further strengthen our position and visibility in the British market, increasing our portfolio in the United Kingdom (including the Crown Dependencies Jersey and Isle of Man) to over €1 billion upon completion of all development projects."

Aedifica invests approx. £46 million in the acquisition and extension of a portfolio of 5 fully operational care homes, of which 4 are located in Jersey and 1 on the Isle of Man. In addition, Aedifica will invest a further £12 million in extensions and internal redevelopment works of 3 of the 5 care homes.

Name

Crovan Court Lavender Villa

Le Petit Bosquet

Les Charrières

St. Joseph's

Total

St. Joseph's

Type	Location	Investment (in £ million)	Pipeline (in £ million)	Capacity (units)	Completion date
Acquisition	Ramsey	6	52
Acquisition & extension	Grouville	5	4	20 (+23)	Q3 2023
Acquisition & extension	St Lawrence	6	2.5	26 (+17)	Q1 2023
Acquisition	Jersey	10.5	50
Acquisition & extension	St Helier	18.5	5.5	83 (+12)	Q4 2023
462	12	283
Assets held for sale	St Helier	9.5	-

Description of the sites

The five care homes of this portfolio are located in Jersey (108,000 inhabitants) and the Isle of Man (85,000 inhabitants). The portfolio comprises two modern, purpose-built care homes, 2 conversions from former hotels and a long standing care campus. Three of these sites will undergo extension and internal redevelopment works to provide additional bedrooms and communal living areas. These extension works are expected to be completed in the course of 2023. Upon completion of the works, the five care homes will accommodate 283 residents in fully en-suite single bedrooms.

Crovan Court3 is a modern purpose-built care home located in Ramsey (Isle of Man) which opened its doors in September 2019 and offers nursing care services in 52 fully en-suite single bedrooms.

Lavender Villa4 care home is a former hotel located on the outskirts of Grouville (Jersey) and overlooking the Royal Bay of Grouville that was converted into a care home. It currently accommodates 20 residents in spacious single bedrooms with en-suite facilities. The care home will be extended, creating additional space for 23 residents and bringing the site's total capacity to 43 residents. The extension works have started and are expected to be completed in the third quarter of 2023.

Le Petit Bosquet5 care home is located in St. Lawrence (Jersey). This former hotel was redeveloped into a care home and is conveniently situated next to a clinic and medical centre. This care home offers care services to 26 residents in fully en suite single bedrooms currently and will be extended with 17 additional beds, bringing the total capacity of the care home to 43 residents. The extension works have started and are expected to be completed in the first quarter of 2023.

2 The assets held for sale are not included in the total investment amount. These non-strategic assets are expected to be sold withing the coming 12 months. During the holding period Aedifica will receive a net rental yield of approx. 6%.

• 3 Address: Aikest way, Ramsey, Isle of Man IM8 3NY

• 4 Address: La Rue à Don, Grouville, Jersey JE3 9DX

• 5 Address: La Rue de Haut, St Lawrence, Jersey JE3 1JQ

Les Charrières6 care home is overlooking the St. Peters Valley (Jersey). This modern purpose-built care home opened in May 2020 and offers nursing care services to 50 residents in spacious fully en-suite single bedrooms.

The St. Joseph's7 care home located in St Helier (Jersey's capital), has been at the heart of the caring community in Jersey for over 100 years. The home caters for a variety of care requirements from residential to nursing and also includes an area purpose built for those with dementia. Today, it accommodates 83 residents in en-suite bedrooms. The care home is currently undergoing a transformative internal reconfiguration and extension. Upon completion of the works the care home will provide care services to 95 residents in fully en-suite single bedrooms. In addition to the care home Aedifica has acquired an apartment building and a development plot adjacent to the St. Joseph's care home for an amount approx. £9 million. These non-strategic assets will be sold within the coming 12 months. During the holding period Aedifica's, net rental yield will be approx. 6%.

• 6 Address: La Rue des Charrières, Jersey, JE3 7ZQ

• 7 Address: St. John's Road, St. Helier, Jersey, JE2 4XZ

Jersey & Isle of Man care home markets

Although Jersey and the Isle of Man are independent jurisdictions from the UK, the organization, a robust government financing system and the care supervision by the Jersey Care Commission and the Isle of Man Department of Health and Social Security are aligned with the principles of the UK care home market. In addition, both islands are facing a rapidly ageing population, an under-supply of qualitative future-proof care home beds, especially for high care dependencies such as dementia. The assets will be actively managed by Aedifica's UK country team.

Les Charrières - Jersey

Description of the transaction

On 1 April 2022, Aedifica acquired ownership of the assets through a mix of share and asset deals. Total investment8 amounts to approx. £58 million (excluding the acquisition price of the assets that will be resold within a period of 12 months).

Description of the operator and the leases

The care homes are operated by LV Care Group, an established locally and focused care group on the Channel Islands with 11 years of experience in the elderly care sector. LV Care Group currently operates approx. 237 beds in 6 care homes in Jersey and Isle of Man.

LV Care Group 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. 5,500 staff in 106 establishments of which 88 care homes across 7 countries, providing high-quality care to approx. 9,100 elderly people. The group already operates 8 Aedifica sites in Belgium and Ireland9.

The care homes are let on the basis of new 25-year triple net leases. The initial net rental yield amounts to approx. 6%.

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

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