French listed property giant Foncière des Régions announced on Tuesday that its hospitality arm, Foncière des Murs has agreed to sell its entire healthcare portfolio to French asset manager Primonial for a price of €301 mln.
The transaction, which reflects a yield of 4.6% and a net margin of 25%,is part of FdR's strategy to focus exclusively on its core activities, namely offices in France and Italy, hotels in Europe and residential in Germany.
In 2014 the company nearly completed the sale of its entire logistics package across a number of transactions including the disposal of €473 mln of assets to Blackstone.
Following the latest disposal, FdR's non-strategic activities comprise only 4% of a total portfolio valued at €18 bn, according to a company spokesperson. They consist of car parks, four remaining logistics platform, and the French residential portfolio.
The divested healthcare portfolio consists of 26 assets, largely nursing homes operated by the Korian Group and located in Ile-de-France and in the regions. Foncière des Régions acquired most of the assets between 2004 and 2005.
Foncière des Régions was advised by Easton Clearwater International, De Pardieu Brocas Maffei and Cheuvreux for this transaction.
For Primonial, this is the latest investment into healthcare real estate following the acquisition earlier this year of a €1.35 bn healthcare portfolio from listed office group Gecina.
Primonial Reim, leading a group of investors including asset manager Amundi and insurers Aviva and Suravenir, paid a premium of around 16% for the assets, reflecting a net yield of 5.9%.
