French asset manager Primonial, which seeks grow its pan-European portfolio, plans to buy half of the German healthcare real estate portfolio owned by Medical Properties Trust for €1.64bn.
The €23.44b manager said it has entered into binding talks, on behalf of institutional investors, to buy 71 post-acute hospitals through a strategic joint venture with Medical Properties.
“These exclusive negotiations illustrate the commitment of the Primonial group and Medical Properties Trust to create a strategic long-term collaboration building upon their respective areas of expertise,” Primonial said.
The transaction, which is subject to conditions, including the approval of Germany’s antitrust authority, is expected to close in July.
Once completed, Primonial group’s assets under management (AUM) in the healthcare sector will increase from €4.4bn in the Eurozone to €5.2bn. Germany would account for €2.6bn and France’s AUM would be €2.2bn.
Laurent Fléchet, Primonial group’s deputy CEO for real estate, said: “This agreement fully reflects the Primonial group’s strategy of developing its European real estate platform.
“Its success comes from the combined work of group teams from Luxembourg, Germany and France. The increasing synergy developed over the recent years demonstrates once again our ability to seize innovative and value-creating investment opportunities.”
Yann Balaÿ, the head of healthcare real estate investment at Primonial, said: “We are delighted to partner with Medical Properties Trust to make this new strategic investment in the German healthcare sector.
“This is a significant deal that will allow us to strengthen our position in this sector both in Germany and in Europe. We hope that this will pave the way for fruitful future cooperation with Medical Properties Trust in Europe.”