Emeis (EU:EMEIS) saw its stock climb 9.4% on Wednesday after the healthcare provider revealed plans to form a dedicated real estate company with strategic partners, a move set to cut its net debt by nearly €700 million.
The France-based elderly care specialist confirmed that Farallon Capital will act as the lead investor, alongside TwentyTwo Real Estate, to establish the healthcare real estate vehicle. Together, the partners are expected to inject €761 million by the end of 2025, representing 62% of the appraised value of the assets to be included in the new entity.
This transaction enables Emeis to surpass its original divestment goal of €1.5 billion for the period between mid-2022 and the end of 2025, bringing the total value of completed or secured deals to approximately €1.9 billion.
The real estate portfolio consists of 68 properties with a total valuation of €1.22 billion, yielding an average return of around 6%. Emeis will continue to operate the properties, which are primarily located in France (68%), with the remainder in Germany (19%) and Spain (13%).
The partnership is structured for five years, with an option to extend for an additional two, allowing Emeis to maintain operational control of the assets while reducing its leverage. The company will also retain 90% of any value creation above the partners’ expected 12% internal rate of return.
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