French property group Icade has agreed to purchase four private hospitals from the Générale de Santé group for EUR 202mln. The companies signed an 'intent to sell' agreement for the premises of the Medical-Surgical-Obstetrics institutions which have a total capacity of 947 beds and are located in the Ile de France region.

French property group Icade has agreed to purchase four private hospitals from the Générale de Santé group for EUR 202mln. The companies signed an 'intent to sell' agreement for the premises of the Medical-Surgical-Obstetrics institutions which have a total capacity of 947 beds and are located in the Ile de France region.

The implementation of the leases, which have a12-year fixed duration starting from September 2008, will generate lease payments of EUR 13.7mln, providing a 6.79% rate of return, the company said in its statement. The leases will be renewable at Generale de Sante's initiative. Icade will also bear the expenses for EUR 36mln modernisation investment that will increase the capacity of the facilities in question (the Hopital Prive de l'Ouest Parisien in Trappes, the Centre Medico Chirurgical Parly II in Chesnay, Hopital Prive Armand Brillard in Nogent-sur-Marne and the Hopital Prive Paul d'Egine in Champigny-sur-Marne) including almost half of the establishment in Trappes. The same conditions will be applied to the additional lease arrangement linked to these investments.

Frederic Rostand, president of the Board of Directors for Generale de Sante, said 'This operation, which follows a previous transfer of ownership of premises in September 2006, is part of the dynamic management of our property heritage.'

The company statement added that the new acquisitions form an integral part of Icade's investment strategy in the health sector, and completes its national coverage, which now amounts to a total portfolio of 2,707 beds and places for a total surface area of around 222,000 m2 and an average net yield 7.1%.

Generale de Sante was advised by Mediobanca, the legal firm De Pardieu Brocas Maffei and the Notaries Wargny Katz. Icade is advised by Jeantet, the legal firm and the Notaries Thibierge.