Primonial Real Estate expands Pan-European 'ESI' real estate fund dedicated to social infrastructure

The Primonial group is expanding its pan-European 'ESI' fund, AIF Luxembourg is dedicated to social infrastructure by acquiring three clinics (Medicine, Surgery, Obstetrics) in France as part of a sale & leaseback operation.

The 'ESI' fund is a pan-European open-ended institutional fund invested in socially responsible real-estate assets in the healthcare, education and affordable housing sectors in Europe.

With these latest acquisitions, the “ESI” fund now has 26 real-estate assets in France, Germany and Austria, valued at more than €400 million.

The three clinics have a surface area of nearly 29,000 sq m with a total capacity of 451 beds. They are entirely leased to the Vivalto Santé Group for a fixed term of 12 years. The facilities offer a range of treatments (inpatient and outpatient medical and surgical treatment, cancer treatment, etc) and have state-of-the-art technical equipment and platforms (scanner, MRI, radiotherapy, particle accelerators, etc). The properties are located in the cities of Saint-Malo, Brest and Annecy, in dynamic areas with large population basins. This operation again demonstrates the Primonial group's ability to forge strategic partnerships with leading healthcare operators in order to support them with their real-estate needs.
Panagiota Roumoudi, manager of the ESI fund, says: “This acquisition is in line with the ESI fund’s strategy of investing at European level in assets with a strong social dimension: healthcare, education and affordable housing. We are continuing to develop the ESI fund by expanding the real-estate portfolio to include very high-quality assets generating attractive performance and long-term income visibility for our institutional investor clients.”
Laurent Flechet, deputy MD responsible for the Primonial group’s real-estate activities, says: “The Primonial group is the leader in healthcare and education real estate in Europe, with more than €8 billion in managed assets. We have been invested in this sector for nearly 10 years and intend to increase our commitments in the coming years. Our goal for ESI is to achieve managed assets of around EUR1 billion by 2022 to support the future financing needs of social real-estate infrastructure in Europe.”

Primonial was advised for this operation by Archers for legal aspects, Allez & Associés for conveyancing aspects and for the technical and operational component CAREIT, Europe's leading platform for real estate services 100 per cent dedicated to healthcare.

This transaction was financed by Caisse d'Epargne Bretagne Pays de Loire (Lender), Crédit Coopératif (Lender), Caisse d'Epargne Ile de France (Lender and Co-arranger) and Helia Conseils (Co-arranger).