Korian enters into a development partnership with Aedifica in the Netherlands

• Creation of the first joint venture between a real estate company and an operator in the Netherlands
• 50/50 asset holding
• First portfolio of assets to be developed for a value of € 75m
• A structure to support the acceleration of Korian's development in the Netherlands

This partnership takes the form of a joint venture ("maatschap"), owned equally by the two partners, which will invest in the development of new real estate projects in the Netherlands.

These establishments, which will be operated by Korian, are intended for the reception and care of frail and elderly people. Korian already operates 36 villas, therapeutic apartments and clinics in the Netherlands to date, and will put 9 additional establishments into service by 2021, for a total capacity of 1 beds.

Among the new establishments under construction, 3 are carried by the joint venture, the first of this type created with Aedifica.

Additional projects will be announced in the coming weeks.

Particular attention will be paid to the energy quality and environmental standards of future buildings, in line with the so-called “GPR” standard in the Netherlands.

Ultimately, this partnership aims to develop an asset portfolio of around € 75 million, a significant portion of which should be secured quickly in 2021. The association within a common legal structure allows Korian to benefit from value creation associated with the park it operates in the Netherlands, while increasing its property ownership rate.

Aedifica is a long-standing partner of Korian, in Belgium where it owns the premises of 28 of the 120 establishments managed by Korian, as well as in the Netherlands, where it owns 10 establishments operated by Korian.

Dominiek Beelen, Managing Director of Korian Benelux commented : “Aedifica is a long-standing partner of Korian in Belgium, where it owns the buildings of 28 of our 120 establishments, and recently also in the Netherlands, where it has ten operated treatment villas. We are pleased to announce this joint venture which will allow us to pursue our organic growth policy in the Netherlands by exploiting the experience of both groups. Together, we plan to develop new, innovative and environmentally responsible care villas for the elderly, focused on a small-scale personalized care approach in a family environment. There is a growing need for residential care establishments where we can put our positive approach to care at the service of our elderly, and we expect to have more than 45 establishments in the Netherlands by the end of 2021 ”.

For his part, Stefaan Gielens, managing director of Aedifica added : “Aedifica and Korian are joining forces in a joint venture to jointly invest in the development of future-proof real estate in the healthcare sector in the Netherlands. By joining forces with those of Korian, we are creating a new opportunity for continued growth in the Dutch market. In addition, this transaction will strengthen our long-standing collaboration with one of Europe's leading nursing home operators. Thanks to the combined experience of Aedifica and Korian, even more elderly people in the Netherlands will benefit from sustainable and innovative care concepts that put residents at the center of concerns and give them the space they need to receive care. the way they prefer ”.

This collaboration is part of the “Asset Smart” strategy implemented by Korian in 2016 which notably includes balanced partnerships with renowned real estate companies and which will allow the Group to capture part of the long-term value of the real estate that 'he operates.

Korian has effectively set up for three years a number of other real estate partnerships in co-ownership:

• A joint venture in 2020 with Konrad including seven retirement homes, a service residence in Belgium, a secure extension project and a pipeline of two future projects. Korian holds 52% of the whole and Konrad 48%. Korian's leases on these assets have a term of 12 years.
• In May 2019, Korian joined forces with Banque des Territoires and Crédit Agricole Assurances, to support the deployment in France of Ages & Vie homes, an alternative solution of shared housing for the elderly. At the end of 2020, the real estate company thus created will own 69 of the 150 new establishments announced by 2024, all the buildings being built according to the NF Habitat HQE standard.

Korian continues to develop its real estate portfolio in order to support its operations, in line with its strategy and in compliance with its CSR commitments to its stakeholders.