Anticipating society’s healthcare needs
Elsan PSOA (Pôle Santé Ouest Atlantique) - Saint-Herblain (44) - Opérateur : Elsan - Architectes : AIA
As the leading investor in private hospital real estate in France, Icade Santé draws on its proven expertise in healthcare property, its long-term institutional shareholders as well as its extensive knowledge of the real estate value chain. In 2018, Icade Santé completed its first international investment in Italy.
In 2018, Icade Healthcare Property Investment Division consolidated its leading position. The Division is valued at €4.5 billion (on a full consolidation basis) and is mainly made up of 115 healthcare facilities throughout France.
It invests in private healthcare facilities (medicine, surgery and obstetrics; follow-up and rehabilitation care; and psychiatry) as part of partnerships with tenant operators, helping them achieve their growth ambitions. Thanks to its experience in the healthcare sector and its strong shareholding structure, Icade Santé is able to invest in high-quality assets.
Since 2012, Icade Santé has carried out successive capital increases with leading institutional investors in order to support its growth. As of December 31, 2018, Icade’s stake in Icade Santé stood at 56.77%.
2018 highlights: consolidation of Icade Santé’s leadership.
Icade Santé made its first investment in the nursing home sector by acquiring a portfolio of 14 facilities for €189 million from the Residalya group (which will remain the tenant and operator of these nursing homes under 12-year leases with no break options). This acquisition marked the start of Icade Santé’s strategy of diversifying into long-term facilities.
In addition, in line with its new strategic plan, Icade signed its first international investment in October 2018 for €112 million to acquire, upon completion of the facilities, seven nursing homes to be built in northern Italy, with an initial yield in line with the market. This investment should start generating rental income in 2020. In addition, as part of a partnership6 established in 2017, two construction projects for post-acute care facilities (PAC) in the Paris and Nouvelle-Aquitaine regions were signed by Icade Santé and Korian in 2018. The facilities are scheduled to be up and running by 2021. As of December 31, 2018, the development pipeline of the Healthcare Property Investment Division was equivalent to nearly €255 million and €14 million in additional rental income.
Icade Santé’s leadership in its sector is partly based on its strong partnerships with the private healthcare operators that rent the properties. The key to Icade Santé’s success has been its ability to offer partner healthcare operators sale and rent back solutions and to assist them in modernising their facilities or developing their operations, notably with support from Icade’s Property Development Division. Teams at Icade Santé have extensive experience in real estate investment, complex project management and a deep understanding of the issues facing healthcare players, including public health authorities.
By investing alongside healthcare players, Icade Santé helps them strengthen their range of services and optimise their business model. In doing so, Icade Santé is playing an active role in the broader transformation of the healthcare industry. Adapting the healthcare portfolio to the needs of local users and the rise of outpatient care are two of the main issues for which Icade Santé is implementing innovative solutions in line with challenges for today and tomorrow.
In 2017, the Healthcare Property Investment Division formed an innovative and promising development partnership with Korian, the leading player in the nursing home segment . Under this partnership, Icade Promotion will be in charge of developing an initial set of 16 new facilities (nursing homes and post-acute care facilities) in France for a total of €175 million. Korian and Icade Santé retain the option to act as investors, on a case-by-case basis.