AXA Real Estate Investment Managers has acquired a healthcare development site in Valencia, Spain, to build a hospital as part of its wider alternatives strategy.
AXA Real Estate Investment Managers has acquired a healthcare development site in Valencia, Spain, to build a hospital as part of its wider alternatives strategy.
AXA Real Estate will undertake the development of the asset, transforming what is currently a 4,300 m2 plot of land with a completed concrete core into a 36,000 m2 full-service hospital.
The acquisition was carried on behalf of a joint venture between two clients, including a large US pension fund and Medical Properties Trust (MPT), a real estate investment trust focused on investing in and owning healthcare facilities. It is the first deal AXA Real Estate has undertaken on behalf of the new partnership, which targets healthcare investments primarily in Western Europe and the Nordics.
AXA Real Estate has secured a pre-let agreement with IMED Hospitales, a Spanish hospital operator, for the Valencia asset. The hospital will serve an anticipated 150,000 patients a year across 27,000 m2 of floor space and 210 private patient rooms. It will also comprise 15 intensive care units, 87 outpatient surgeries and 15 general operating theatres.
'As a sector, healthcare is underpinned by robust demographic and social fundamentals and with dedicated in-house specialist knowledge, AXA Real Estate is in a position to capitalise on the strong market sentiment and attractive returns,' said Hideki Kurata, head of Alternatives & Special Situations at AXA Real Estate.
AXA Real Estate currently manages over €2.5 bn of alternative assets, all of an operational nature including healthcare facilities, hotels, data centres and forestry assets, primarily in Europe.
