Primonial REIM has finalised the acquisition of a portfolio of seven healthcare facilities in France from Elsan, the largest private hospital operator in France, in a sale and leaseback worth €252 mln.
The acquisition goes in tandem with the launch of a long-term partnership with Elsan, which will continue to operate the assets. The facilities acquired will be entirely leased back to Elsan with a 12-year fixed term.
The portfolio encompasses two French regions, Auvergne-Rhône-Alpes and Bourgogne Franche-Comté. It includes two medical and surgical clinics, three medical surgical and obstetrics clinics and two follow-up care and physiotherapy clinics, representing a total surface area of more than 80,000 m2 and more than 1,000 beds.
Primonial REIM and Elsan have also planned the extension and renovation of some of the facilities in order to improve energy efficiency and expand the range of treatment and services on offer.
‘The current health crisis has accelerated private investors’ appetite for healthcare real estate,’ said Primonial REIM’s board chairman Grégory Frapet. ‘Through this partnership, we are supporting Elsan in its development, offering the public effective and modern healthcare solutions in high-demand areas, and providing our investor clients with potential long-term revenues. Healthcare real estate is at the heart of Primonial REIM's strategy and we plan to pursue our investments in socially useful sectors.’
The deal was carried out on behalf of Primonial’s institutional funds.
