France's Icade exits resi asset class

In Residential Watch
12:01, 13 May 2022
By Virna Asara

French REIT Icade has signed a bilateral preliminary agreement with the RLF Group to sell its residual portfolio of individual condominium housing units located in 28 towns in the Paris region for €49.4 mln excluding duties.

The RLF Group consists of the social housing provider Résidences le Logement des Fonctionnaires (RLF) and its intermediate housing subsidiary iRLF.

The transaction will be completed once the customary conditions precedent for sales to social landlords have been met. This will be done over a span of time, with the final deeds to be signed in 2022 and H1 2023.

Through this deal, Icade will dispose of all its non-strategic legacy residential investments and be exclusively focused on offices and healthcare. At the end of last year the company entered the Portuguese property market with the acquisition of a portfolio of four private hospital assets for €213 mln, the largest such deal in the country.

'This sale ends Icade’s exposure to this asset class. As such, the disposal of legacy assets considered to be non-strategic will further streamline and optimise the value of the portfolio,' explained Antoine de Chabannes, an Executive Committee member in charge of Portfolio Management.