French REIT Icade has completed the acquisition of 16 private hospitals which were put up for sale as part of the merger between healthcare operators Vedici and Vitalia.
French REIT Icade has completed the acquisition of 16 private hospitals which were put up for sale as part of the merger between healthcare operators Vedici and Vitalia.
Icade's majority owned healthcare property subsidiary, Icade Santé, is investing €606 mln in the deal and said it will spend another €45 mln to buy another asset by year-end. In addition, the French REIT holds a right of first offer over five further private hospitals, which it may exercise in 2018.
Icade Santé initially signed a memorandum of understanding to buy the portfolio in July.
The acquisition takes Icade Santé's portfolio to 89 assets worth a total of almost €3.1 bn and yielding an annual rental income in excess of €200 mln', the company said.
'Through this deal, Icade Santé consolidates its strategic partnership with the new group resulting from the combination of Vedici and Vitalia, which becomes the No.2 player in the French private hospital Sector,' it added.
Vitalia is the operator of 41 clinics with a turnover of €606 mln while Vedici manages 40 clinics with a turnover of €570 mln.