Metrovacesa has signed an agreement, through its subsidiary Gecina, to purchase 28 health centres belonging to Générale de Santé for €536 million. Complementing this transaction, Gecina is to invest €30 million in the renovation and extension of the installations.
This operation, which will be definitively signed and sealed at the end of June 2006, will involve a rent contract for a period of between 10 and 14 years which will generate annual rents of €32.4 million, giving a yield of 6.04%.
The investment is another step in Gecina's diversification strategy, which it started at the end of 2005. Thanks to this, Metrovacesa's subsidiary will become one of the leading players in the health sector.
Gecina is a real estate company in France and has property for rental valued at some €9,000 million.
Générale de Santé, a company listed on the Paris Bourse, is the leading private company in the hospital market in France. It has a 15% market share and obtained 1,435 million in revenues. The group is also present in Italy and has a network of 172 health centres, with a capacity of 14,400 beds.
In 2005 Metrovacesa obtained €381.9 million in net income, 74.4% more than the previous year. The Group, which includes the French company Gecina, has assets valued at €15,718 million. The budget passed by the company for 2006 estimates net income of €696 million.