European healthcare REIT Careit and portfolio management firm Primonial REIM have signed an extensive development deal with Korian, a provider of senior support services.
Financial details were not disclosed.
Primonial REIM is currently Korian's biggest landlord with around fifty facilities in France and Germany.
The joint venture will enable Korian to build new faciliies in France by transferring, combining or creating new post-acute and rehabilitation care units and long-term care nursing homes. It has seven operations lined up so far.
'I am delighted about this partnership, which will enable Primonial REIM, a key player in healthcare real estate in Europe, to secure new investment opportunities at an early stage, adapted to patient needs, strengthening our relationship with Korian with the input of Careit’s expertise,' said Grégory Frapet, chairman of Primonial REIM’s executive board.
Under the agreement, Careit will be awarded a real estate development contract or an off-plan sales contract (respectively known as CPI and VEFA contracts in France) and will assist with the design and build of the new Korian establishments.
'This partnership seals the fruitful collaboration between Korian, CAREIT and Primonial REIM for rolling out modern projects tailored to the current and future needs of residents, patients and healthcare professionals,' added Careit chairman Filippo Monteleone.
The VEFA off-plan sales contract will give Primonial REIM the opportunity to buy some or all of the new facilities and grant leases to the Korian group under an off-plan lease agreement (BEFA).
Korian said the partnership was in line with its strategy to expand and restructure its European real estate portfolio, with fifty new build developments expected by 2022.
