Following the exclusivity agreement signed on March 13th, 2023, Primonial REIM announced the closing of the first phase of the acquisition of 64% of Icade's stake in Icade Sante for €1.4b.
As part of this transaction, Primonial REIM takes on from today the management of the property assets held by Icade Santé/Praemia Healthcare, valued at €6.2b - a portfolio mainly made up of short-stay establishments (medicine/surgery/obstetrics clinics). In the context of this deal, Primonial REIM is also taking over management of the Icade Healthcare Europe portfolio, valued at €850m, which is due to be sold according to a timeframe designed to optimize its value between now and the end of 2024.
The Icade Santé team of 42 employees will join Primonial REIM and remain in charge of the delegated management of the property portfolio.
This structurally-important transaction reflects Primonial REIM's strategic willingness to strengthen its allocation in healthcare real-estate infrastructure, a resilient and acyclical asset class driven by long-term demographic trends, while at the same time diversifying its existing property portfolio.
Icade's remaining 36% stake in Icade Santé/Praemia Healthcare portfolio consisting of 159 healthcare assets with a total surface area of c. 2,000,000m² will be acquired gradually between now and the end of 2025, by funds managed by Primonial REIM France or investors identified by the fund management company.
Laurent Fléchet, President of Primonial REIM, stated: "We are very proud to announce the completion of the first phase of this acquisition, one of the largest in the history of the healthcare sector in Europe, and a structurally significant transaction for Primonial REIM. Supported by a long-term investment strategy at a time when Europe's population is ageing, and decor-related from economic cycles, healthcare real estate makes it possible to reconcile socially responsible investing with financial performance objectives for our investors. The sector still suffers from a real lack of supply, and our investments finance and support the structural needs of healthcare establishments, to the benefit of operators, care staff, patients and their families. Today, with the integration of Icade Santé's extremely high-quality portfolio, renamed "Praemia Healthcare", Primonial REIM is significantly amplifying this positive social impact and further diversifying its property portfolio in terms of asset types and geographical coverage. Following this transaction, healthcare real estate - a sector in which we have been strongly positioned for over 10 years - becomes the majority asset class of our pan-European platform, whose allocation is now split between 65% alternative real estate assets - healthcare, residential, hotels, retail and logistics - and 35% office real estate. Thanks to this major transaction, we are consolidating our position as the undisputed market leader in Europe".
Primonial REIM was assisted in this transaction by the law firm Gide, SGCIB as M&A advisor, CMS as employment advisor and Cheuvreux as notary advisor.
