15. April 2012     Print Print 

Gecina buys nursing home portfolio from W.P. Carey JV

Gecina has acquired real estate companies owning a portfolio of six nursing homes from MAPI Invest, a joint venture between the W. P. Carey and CPA 15 funds.

The six facilities are all in outstanding locations in urban and residential areas across the Paris Region (Paris, Poissy, Chatou, Rueil-Malmaison, Rosny-sous-Bois and Sarcelles). They are let to the Medica France group under triple net investor leases, with a residual firm period of 9.5 years. These six assets are valued at 70.5 million euros excluding duties, based on 4.6 million euros in annualized rental income, giving a net yield rate of almost 6.2% for this portfolio.

In this way, Gecina is continuing to diversify its healthcare real estate portfolio, in line with the process that began in 2011 with the acquisition of the Foncière Sagesse Retraite portfolio (30 nursing homes across France, with 26 let to Domusvi and four to Korian), while rebalancing its property holdings through greater exposure to the medico-social sector (30% of rental income from this segment following the operation, versus 25% previously).

Gecina’s strategy for partnerships with the main healthcare operators is also continuing to move forward with this acquisition. Indeed, the company has further strengthened its alliance with the Medica France group, number four on the French nursing home market with 9,730 beds and 123 facilities. Before this operation, Medica represented 4% of Gecina’s annualized rental income on healthcare real estate, with this figure rising to 10% following this deal.

Following this operation, Gecina’s healthcare real estate portfolio includes almost 8,400 beds in 75 facilities throughout France. In addition, the Pays de Savoie private hospital is currently being built in Annemasse, with delivery scheduled for the second half of 2012.