Gecina buys nursing home portfolio from WP Carey JV

French REIT Gecina has acquired real estate companies owning a portfolio of six nursing homes from MAPI Invest, a joint venture between WP Carey and CPA 15 funds. The price of the six assets totalling EUR 70.5 mln excluding duties reflects a net yield rate of almost 6.2%. The properties generate EUR 4.6 mln in annualized rental income.

The six facilities are in locations in urban and residential areas across the Paris Region (Paris, Poissy, Chatou, Rueil-Malmaison, Rosny-sous-Bois and Sarcelles) and are let to the Medica France group under triple net investor leases, with a residual firm period of 9.5 years.

The deal allows Gecina to further diversify its healthcare real estate portfolio, in line with a process that began in 2011 with the acquisition of the Foncière Sagesse Retraite portfolio which comprises 30 nursing homes across France. The medico-social sector now accounts for 30% of rental income compared to 25%.

The move also allows Gecina to further strengthen its alliance with the Medica France group, which ranks fourth in the French nursing home market with 9,730 beds and 123 facilities. Medica now accounts for 10% of Gecina’s annualized rental income from healthcare real estate, compared with 4% previously.

Gecina’s healthcare real estate portfolio includes almost 8,400 beds in 75 facilities throughout France. In addition, the Pays de Savoie private hospital is currently being built in Annemasse, with delivery scheduled for the second half of 2012.

Gecina was advised by Fairway and De Pardieu Brocas Maffei, Wargny-Katz, Jones Lang LaSalle and KPMG. Mapi Invest was advised by DTZ Asset Management, Baker & McKenzie, Attal et Associés, and Ernst & Young.

Gecina owns, manages and develops property holdings worth EUR 11.8 bn at end-December 2011, with 86% located in the Paris Region.