Baloise joins Infracore

The insurer Baloise is buying a 20 percent stake in the real estate company Infracore SA (formerly Swiss Healthcare Properties), which belongs to Aevis Victoria, for CHF 86.5 million. The portfolio of Infracore, which focuses on the healthcare sector in Switzerland, includes 34 hospital properties with 138,084 sqm of total rental space, which are leased to clinics of the Aevis Group on a very long-term basis.

According to the insurance group, Infracore will be valued at 852.5 million (including net financial debt) as part of this transaction. Baloise is also providing Infracore with financing in the form of a bond in the amount of 100 million with a term of three years and a coupon of 1.5 percent, it says. Not part of the transaction with Baloise are the healthcare properties in Geneva of Générale-Beaulieu Immobilière and the hotel properties of Swiss Hospitality Properties.

Baloise's participation is "a first step towards Infracore's full independence by allowing other investors or the public to participate," the insurer added. Working closely with Baloise, Infracore will continue its growth and consolidation strategy in healthcare real estate in Switzerland in both the private and public sectors, it added.

The Baloise Group sees the high investment needs in the coming years, including in the public health sector, as "an opportunity to develop Infracore's real estate portfolio"; this type of investment vehicle is widely used in Europe and the United States. According to the information, Aevis Victoria "will retain the remaining 80 percent of the share capital in Infracore at this stage." The sale of the 20 percent stake strengthens the company's equity and increases its financial flexibility, it said. At the middle of last year, the hospital and hotel group had total assets of 1.8 billion and equity of 0.4 billion. (bw)