Italy

 

Report: Healthcare Europa Property Survey 2015

There is intense investor interest in healthcare services property across Europe. Fund manager Marc Phillip Martins-Kuenzel, at German real estate investor Corpus Sireo claims that he had 400 approaches from prospective buyers in a single year. This reflects the global search for high yielding investments. But healthcare property also carries risks. Some sectors such as the French hospital market, where major deals have been done, look risky as the government cuts tariffs. And the sector remains opaque and poorly segmented. There are plenty of traps for the unwary. It is also far from clear how much new capacity will come on stream for investors over the next decade. Here we look at whether and when the boom will go bust. First, we run through the headlines and what has happened to prices. We then go on to look at supply and demand. Other articles profile the main US and European property investors and the main national markets.

Italian care home chain Eukedos starts external growth phase

Eukedos's president, Carlo Iuculano, says he might merge quoted care home group Eukedos where he holds a majority stake with the larger La Villa chain, which he also controls. This would create a group with 38 nursing homes and 3,200 beds, the third largest after Korian and Kos.

Ardian to sell 47% stake in Kos for at least €235m

Private equity house Ardian is to sell its 47% stake in Italian care group KOS. The likely buyer is CIR, the conglomerate which holds a majority stake in KOS, although many private equity houses are also interested in the stake which has almost certainly got “drag along rights”. Those would enable any buyer to force CIR to sell if a bidder came along for the entirety of KOS.

Cinven’s €3 billion bet on labs

Cinven has placed a €3bn bet on the European diagnostic laboratory space, by agreeing to pay a higher than expected €1.85bn for synlab Group, a multiple of just over 12 times current EBITDA. It will combine synlab with Labco to create a truly Pan-European lab group with pro-forma 2014 sales of just over €1.4bn, nearly twice that of its nearest rival. But why bet €3bn on a sector where tariffs are falling and operators have no control over pricing? And could the French authorities block the deal?

San Donato expands to Dubai

Italian hospital chain San Donato is expanding to Dubai, says the group's president Paolo Rotelli.

Cofinimmo increases its German footprint

Belgian healthcare real estate investment trust Cofinimmo has tripled its investments in Germany with the purchase and leaseback of two high-end wellness and sport centres from the Aspria Group. We speak to Cofinimmo CEO, Jean-Edouard Carbonnelle about the deal.

Budget issues hit private operators

Despite being rescued by a deal with the central government, the heavily indebted Italian region of Lazio continues to pursue cuts to public services. This means tough times for private healthcare operators, such as for-profit Gruppo Garofalo and not-for-profit player IRCCS San Raffaele Pisana.

Cinven scoops Labco at silly price

Private equity house Cinven is to buy Labco for an enterprise value of just €1.2bn. The news came two weeks after Labco’s IPO failed. We reflect here on the EBITDA multiple and at what this means for the rationalisation of the European market.

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