Wednesday, May 07, 2008

Orpea Ponders Sale Leaseback on Part of EUR 1.2 Billion French Care Home Portfolio

PropertyEU - May 5, 2008

French nursing home group Orpea said it plans to outsource part of its real estate portfolio in the second half of 2008. The company said it is considering different options, including the sale-and-leaseback of some of its development assets to one or more investors, and the direct sale of a number of properties. A third option would be to transfer part of the portfolio to a new OPCI property investment fund in which Orpea would retain a minimum of 60%.

The company added that it has already been approached by a number of French and foreign investors regarding the assets, but would not disclose the name of the interested parties.

Orpea, which made the announcement during the presentation of its results for the 2007 year, said that its property portfolio has a market value of EUR 1.2bn, of which development assets make up for EUR 350mln. The portfolio comprises of 103 buildings, of which 41 are partially owned, located in or near large towns in France.

'This real estate strategy aims to maintain robust margins while controlling the impact of rents on operating performance, in order to pursue the group's value creation policy,' the company said in a statement.

Orpea expects to open 13 new facilities totalling about 1,200 beds in 2008. The company is currently renovating or developing nearly 7,000 beds which are expected to increase its activities by 50% over the next three years. Sphere: Related Content

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