Gecina in talks to buy EUR 239m of nursing homes

French listed property group Gecina is in exclusive negotiations to buy a portfolio of 31 nursing homes, operated by Group DVD and Korian, for a total of EUR 239 mln. The transaction is expected to generate a net yield of 6.35%.

The operation should allow the company to reach its EUR 1 bn target of healthcare property by the end of the year.

Gecina plans to carry out a EUR26 mln extension and refurbishment programme on these assets aimed at generating additional rents. Gecimed, Gecina's healthcare division, generated a gross rental income of EUR 47 mln in 2010.

Additionally, Gecina said that it has signed a preliminary sales agreement for a portfolio of logistics assets with the Carval fund, part of US-based Cargill group. The transaction amounts to a net price of just over EUR 119 mln.

The portfolio consists of 22 assets, with a total area of 416,000 m² and a vacancy rate of 42%. The transaction is in line with Gecina's strategy to reduce its exposure to the logistics sector, which currently represents around EUR 300 mln in value. Cargill is an international provider of food, agricultural and risk management products and services.