France-based healthcare group, emeis, has announced the sale of a real estate portfolio consisting of eleven nursing homes in the Netherlands. The total value of the deal is approximately €97 million, with the properties being sold to Bouwinvest. As part of the agreement, emeis will continue to operate all eleven facilities under long-term lease contracts.
This strategic move aligns with emeis’ plan to divest real estate assets and strengthen its financial structure as outlined in the Refoundation plan presented last year. The aim is to reduce the Group’s holding of operated assets to 20-25% in the medium term. Signing long-term leases and planning to open new facilities demonstrate emeis’ commitment to expanding its presence in the Netherlands and instilling confidence in investors.
The portfolio being sold includes five recently constructed nursing homes in Best, Ede, Emmeloord, Heerenveen, and Middelburg. Additionally, there are six nursing homes currently under development, scheduled for completion in 2024 and 2025. Once fully operational, these eleven facilities will accommodate a total of 375 residents under the management of emeis Group subsidiary, Wonen bij September.
The transaction was based on valuations in line with the facilities’ completed value by the end of 2023. These sales contribute to emeis’ commitment to its lenders, as per the financing agreement established in June 2022.
emeis is known for its comprehensive services in the healthcare industry, operating in 20 countries across various sectors, including psychiatric clinics, medical care, rehabilitation clinics, nursing homes, home care services, and assisted-living facilities. With a workforce of 76,000 professionals, emeis annually serves 267,000 residents, patients, and beneficiaries.
The Group’s parent company, ORPEA S.A., is predominantly held by Caisse des Dépôts, CNP Assurances, MAIF, and MACSF Epargne Retraite. It is listed on the Euronext Paris stock exchange and is included in the SBF 120 and CAC Mid 60 indices.
For more information, visit the emeis website at www.emeis.com.
Press Contact:
Isabelle Herrier Naufle
Director of Medias & e-reputation
Phone: +33 (0) 7 70 29 53 74
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While the article provides information about emeis selling its real estate portfolio in the Netherlands, there are several additional facts, trends, and challenges that can be discussed.
Current Market Trends:
1. Increasing Demand: There is a growing demand for nursing homes and healthcare facilities due to the aging population in the Netherlands. This trend is expected to continue, creating opportunities for investors and operators in the sector.
2. Sustainability: The market is increasingly focused on sustainable and energy-efficient buildings. Investors are looking for properties with green certifications, such as LEED or BREEAM, which can increase the value of the assets.
3. Technology Integration: The integration of technology in healthcare facilities is becoming a critical trend. Investments in telehealth, remote monitoring, and smart home technologies are expected to enhance the quality of care and efficiency of operations.
Forecasts:
1. Continued Growth in Healthcare Real Estate: The demand for healthcare real estate is expected to continue growing in the coming years. This is driven by factors such as population aging, increased focus on specialized care, and government initiatives to improve healthcare infrastructure.
2. Expansion of Private Players: Private investors and healthcare groups like emeis are likely to play an increasing role in the development and operation of healthcare facilities. This trend is driven by the need for investment and expertise in the sector.
Key Challenges and Controversies:
1. Financing and Investment Risks: Investing in healthcare real estate can be capital-intensive, with potential risks related to leasing, maintenance costs, regulatory changes, and reimbursements from healthcare systems. The economic uncertainties caused by the COVID-19 pandemic have also added to the challenges.
2. Regulatory Environment: The healthcare sector is subject to complex regulations and compliance requirements, which can vary across countries. Staying updated with these regulations and ensuring compliance can be a challenge for healthcare operators and investors.
Advantages of the Sale:
1. Financial Strengthening: The sale of the real estate portfolio allows emeis to strengthen its financial structure, as outlined in its Refoundation plan. By divesting non-core assets, the company can focus on its core operations and strategic initiatives.
2. Long-Term Lease Contracts: By signing long-term lease contracts as part of the sale agreement, emeis ensures a stable income stream and reduces the operational risks associated with owning and managing the properties.
Disadvantages of the Sale:
1. Reduced Asset Ownership: Selling the real estate portfolio means emeis will have a lower percentage of operated assets in its portfolio. This may limit the company’s control over the properties and reduce its ability to capitalize on future appreciation in their value.
2. Potential Rental Increases: The long-term lease contracts may include provisions for rental increases, which could impact emeis’ operating expenses in the future. This risk should be carefully managed to ensure the financial sustainability of the lease agreements.
Some additional information and insights on these topics can be found on the website of the Healthcare Property Investment Association (HPIA) at https://www.hpia.ie/, an organization that provides resources and industry updates on healthcare real estate investment.
Furthermore, the International Real Estate Federation (FIABCI) at https://www.fiabci.org/ can also offer valuable insights into global real estate trends, including healthcare real estate.
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