French listed property firm Icade's €6 bn healthcare real estate arm on Friday announced the approval of its registration document, representing the first step of its planned IPO on the regulated market of Euronext Paris.
The operation, which is dependent on favourable market conditions, will see Icade Santé go public and increase its capital by €800 mln as part of plans to grow across Europe and finance the firm's €3bn investment plan over the 2021-2025 period.
The company currently owns 183 healthcare facilities in France (92% of portfolio), Germany, Italy and Spain, the four most populated countries in the Eurozone. Icade, which currently holds 58.3% of Icade Santé, intends to remain the controlling shareholder of the company post IPO.
'Icade Santé is a leader in healthcare real estate in Europe. It benefits from a very solid business model, remarkable features and a strong strategic position in Europe. Since its creation fourteen years ago, the company has experienced a fast-growth trajectory and is today ideally set to continue to grow and create value together with the best operating tenants in the sector while delivering attractive total shareholder returns to real estate investors,' commented Xavier Cheval, CEO of Icade Santé. 'Our initial public offering is designed to finance our 2025 higher-growth ambitions, which will be supported by the acceleration of our international expansion and the further diversification of our portfolio. Icade Santé’s teams and I are very proud to initiate this planned offering, which will enable us to consolidate our leadership in Europe while welcoming new shareholders.'
The company has performed strongly over the past 12 months and is expecting a 5.5% year-on-year increase in gross rental income in 2021 to €318 mln. EPRA earnings are also forecast to rise 6% to €251 mln compared to FY 2020.
The proceeds from the IPO will be used to fund a €489 mln development pipeline along with new acquisitions under exclusivity worth €350 mln and a rolling volume of investments under review of up to €1 bn, the company said.
