First deal made in French secondary market

What is believed to be the first deal in the secondary market for French acute hospitals has been struck by Gecimed, the healthcare arm of property REIT Gecina.

Gecina, a quoted French REIT, has sold a portfolio of three acute hospitals and one psychiatric hospital to the BNP Paribas fund run by Jean-Maxime Jouis.

Whilst no yield was reported, the price works out on a per bed basis at €105,000. That is a lot lower than previous deals struck by Icade with Medi-Partenaires at €150-160,000 per bed. The replacement cost of an acute care bed can be as high as €180,000 with a replacement cost of a nursing home bed at circa €100-€120,000.

The four hospitals fetched a total of €80m, but the rental yield was not disclosed. Stephane Pichon of Your Care Consult, who advised Gecimed, said that the deal follows the first secondary sales in the nursing home market in 2012. He claimed that the yield was a win for both parties. In its release, Gecina said that it wanted to reduce its exposure to the private acute hospital sector, particularly for MCO (medicine, surgery, obstetrics). Tariffs here are unlikely to increase under the Hollande government.

Source: Healthcare Europe / April 9th 2013

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