Gecimed, the healthcare unit of Gecina, has signed a preliminary agreement with Foncière Sagesse Retraite (FSR) to buy a portfolio consisting of 30 nursing homes for a total of EUR 230 mln, reflecting an initial yield of 6.36%.

The portfolio offers 132,000 m2 of space with capacity for 2,700 beds across France. It is operated by nursing home groups DVD (26 assets) and Korian (4 assets) with an average residual lease term of 8.5 years. The deal is expected to be completed in June 2011.

Gecimed said the transaction allows it to start a joint venture with DVD, a leading nursing home operator in France with 208 assets and over 16,500 beds. It also enables the company to reach its EUR 1 bn target of healthcare property. Upon closing, Gecimed will own nearly 8,000 beds over 70 assets.

A EUR 26 mln extension and redevelopment programme is planned to be launched with completion expected in 2013. The plan will generate an additional EUR 2 mln in annual rents.

Gecimed was advised by law firms Wargny-Katz, Fairway, Bredin Prat and CMS BFL on legal and fiscal issues. Catella advised on real estate.