Primonial REIM signed a partnership agreement with Colisée, which in 2017 ranked fourth among France’s largest managers of long-term care facilities* (EHPAD, for its French acronym).
FASTER GROWTH IN THE EUROPEAN HEALTHCARE REAL-ESTATE SECTOR, PARTICULARLY IN ITALY
The partnership aims to boost Primonial REIM and Colisée’s growth at the European level, and particularly in Italy, by generating synergies in the nursing home sector. Under the agreement, Colisée will present to Primonial REIM its plans for investing in retirement homes in Italy, as regards both creating new homes and acquiring existing ones.
A SOLID PARTNERSHIP WITH AROUND 10 PROJECTS ALREADY IDENTIFIED
The alliance is based on predefined investment conditions, including in relation to rental terms, which will involve long-term leases for all transactions. About 10 projects have been identified at this stage with a value of around €100 million, and an exclusivity agreement has already been formed regarding the first Colisée project presented to Primonial REIM.
HIGH-QUALITY ASSETS IN A BUOYANT MARKET AND A PROMISING REGION
These transactions will relate to Residenza Sanitaria Assistenziale (RSA) healthcare properties, mainly located in Northern Italy (Piedmont, Lombardy, Veneto, Tuscany and Liguria). These regions offer particularly attractive prospects in the retirement home sector, with the number of people aged over 80 expected to rise by 30% in the next 10 years, and an equipment rate relatively low** compared with demand. These nursing homes will be managed by iSénior, the Colisée group’s local subsidiary, which is renowned for meeting demanding requirements in terms of support and care provided to its residents.
Grégory Frapet, Chairman of Primonial REIM’s Executive Board, made the following comments: “I am delighted with this partnership with Colisée, which is perfectly aligned with Primonial REIM’s ambition of stepping up its growth in the healthcare real-estate sector, developing new projects and strengthening its presence in Europe, particularly in Italy. It also gives us access to the expertise of a major nursing home operator. We already operate in Italy, with six properties currently owned on behalf of our SCPI Primovie fund, of which 2 majors are Poliscare in the Emilia-Romagna region of Northern Italy and in Puglia, along with Le Terrazze, in Cunardo in Lombardy, Northern Italy’s most populous region with 10 million inhabitants.”
Christine Jeandel, Chairwoman of Colisée added: “We want to help increase the number of homes in Northern Italy, where an equipment rate no longer meets the needs of older people. Through this partnership with Primonial REIM, we can step up the implementation of our development plan by creating high-quality homes that are fully in line with the requirements of local authorities, and by selectively acquiring existing homes.”
**Source: OECD, LEK research and analysis
Source : Company