The Belgian Competition Authority (BCA) has conditionally approved Aedifica’s acquisition of Cofinimmo, concluding that the transaction raised significant competition concerns in the market for healthcare real estate but could proceed subject to substantial divestments.
The deal brings together two of Belgium’s largest specialised investors in senior housing and residential care facilities. Aedifica focuses almost exclusively on healthcare real estate for the elderly, while Cofinimmo has progressively shifted its portfolio in the same direction. Both companies lease residential care centres primarily to commercial operators under long-term agreements, giving them a central role in shaping market conditions for healthcare providers.
In its review, the BCA examined whether the combination would reduce competitive pressure in the leasing of real estate used for residential care centres. The authority found that Aedifica and Cofinimmo are each other’s closest rivals and that alternative investors are either significantly smaller or lack comparable healthcare-specific expertise. As a result, the merger risked increasing market power in a segment where price, quality, and contractual conditions are heavily influenced by a limited number of landlords.
These concerns led the BCA to conclude that the transaction could weaken competition, particularly by reducing choice for healthcare operators seeking suitable premises. To address this, Aedifica proposed a package of remedies centred on the sale of a portfolio of residential care centres valued at €300 million across Flanders and Wallonia.
The divestment is designed to enable the emergence or strengthening of a competing healthcare real estate investor in Belgium. The buyer must already be active in healthcare property or demonstrate the capacity and intention to become a meaningful market participant. Aedifica also committed not to regain control over the divested assets for ten years.
Following market testing, the BCA determined that these commitments were sufficient to offset the competitive harm identified in its assessment. The authority concluded that the remedies would preserve effective competition by maintaining multiple viable providers of healthcare real estate, allowing operators to continue to negotiate on price, quality, and service conditions.