By Nina Kienle

Real estate companies Aedifica and Cofinimmo have agreed to merge, creating the largest healthcare real estate investment trust in Europe.

In a joint statement on Tuesday, the Belgium-listed firms said both boards fully support the deal, which is expected to generate annual cost savings of around 16 million euros ($18.3 million) by eliminating overlaps and improving efficiency.

The combined company will manage approximately 12.1 billion euros in property assets, making it the largest healthcare REIT in Europe and the fourth largest globally, they said.

As part of the agreement, Aedifica will acquire all Cofinimmo shares through a share exchange. Cofinimmo shareholders will receive 1.185 new Aedifica shares for each Cofinimmo share they own, they said.

The companies said the deal will proceed only if more than 50% of Cofinimmo shareholders accept the offer.

If the merger is completed, the newly created company could see an upgrade in its credit rating, potentially lowering borrowing costs, particularly in the bond market.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

June 03, 2025 05:15 ET (09:15 GMT)

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