Primonial REIM completes the sale and leaseback acquisition of 7 healthcare facilities in France from Elsan for €252M

Primonial REIM announces that it has finalised the sale and leaseback acquisition of a portfolio of seven healthcare facilities in France from ELSAN, the largest private hospital operator in France, for €252m (inclusive of taxes and fees). This acquisition is accompanied by the establishment of a long-term partnership, since the properties acquired by Primonial REIM will continue to be operated by ELSAN. The facilities acquired will be entirely leased back to ELSAN for a 12-year fixed term.

This operation represents another landmark transaction for Primonial REIM on the healthcare real-estate market, pursuing its development as the largest European manager in this asset class, with more than €6bn of assets under management.

The real-estate portfolio acquired is divided between two French regions: Auvergne-Rhône-Alpes and Bourgogne Franche-Comté. The portfolio 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 sq. m and more than 1,000 beds.

Primonial REIM and ELSAN have also planned extension and renovation projects in order to improve energy efficiency and expand the range of treatment and services on offer, for the benefit of practitioners, patients and their families. As a manager of third parties, Primonial REIM approaches these developments in consideration of its investors’ best interests.

Primonial REIM Board Chairman Grégory Frapet said: “The current health crisis has accelerated private investors’ appetite for healthcare real estate. This major transaction is part of a long-term partnership initiated with ELSAN, the leading private hospital operator in France. 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.”

For this transaction, carried out on behalf of its institutional funds, Primonial REIM was advised by the law firm ARCHERS for legal aspects, the Cheuvreux notary office for notarial aspects, Denjean & Associés for accounting aspects, KPMG for tax aspects and CAREIT for technical and operational aspects.

About Primonial REIM

Primonial REIM is a portfolio management company that was authorised by the Autorité des Marchés Financiers (AMF) in 2011. Its purpose is to design and manage a range of investment vehicles that reflect its strong convictions about real-estate markets. Its aim is to make SCPI real-estate funds – investing in office, retail, healthcare/education and residential properties – available to the widest possible audience.

As a portfolio management company, Primonial REIM creates and manages real-estate CIUs for institutional and retail investors. On 10 June 2014, Primonial REIM obtained AIFM (Alternative Investment Fund Manager) authorisation from the AMF, under which it is subject to increased obligations in areas such as reporting, liquidity monitoring and risk management. Its Executive Board consists of Grégory Frapet, Chairman, Stéphanie Lacroix, CEO and Tristan Mahaut, Corporate Secretary.