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Nearly €900 million in disposals completed since mid-2022 or secured to date
Disposal of activities in Chile and the Czech Republic
PUTEAUX, France, December 18, 2024--(BUSINESS WIRE)--Regulatory News:
emeis (Paris:EMEIS) today announced that in recent weeks, it had completed the disposal of several real estate and operating assets, as follows:
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A memorandum of understanding between emeis and Penta Healthcare has been signed for the sale of the Group's portfolio in the Czech Republic, and an agreement is in place for the sale of its activities in Chile. Together, these two transactions represent a total disposal value of €171 million.
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In addition, several other property disposals in Germany, Portugal, Spain, Benelux and Ireland have been completed or secured since the beginning of October 2024, for a total of €80 million.
These finalized or secured transactions represent a total of €251 million, bringing the volume of disposals completed since mid-2022 or under promise to date to almost €900 million, which is in line with the Group's ambition to achieve a disposal volume of €1.5 billion by the end of 2025. These disposals will further reduce the Group's debt and strengthen its balance sheet structure
1. Sale of the Group’s activities in Chile and the Czech Republic for €171 million1
On December 18, 2024, emeis signed an agreement with Penta Healthcare Group for the sale of the Group's activities in Czech Republic. This transaction marks the Group's withdrawal from a geographical area representing almost 1.8% of the Group's EBITDAR expected in 2024, with around 2,200 beds in 17 facilities. The transaction is subject to the usual conditions precedent, in particular with regard to competition, and should be completed in the coming months. Penta Hospital International is the leading hospital and clinic group in Central and Eastern Europe, with nearly 60 facilities in the Czech Republic, Poland and Slovakia.
In line with its stated ambition to reduce its exposure to non-strategic markets, the Group also sold this week its entire 50% stake in the Chilean company Rentas Senior Suites S.A. to its local partner Cimenta, an emeis partner since 2019. Rentas Senior Suites S.A. operates nearly 800 beds and owns a portfolio of 5 facilities. The contribution of this investment to net income was previously accounted for using the equity method.
These two transactions together represent a total sale price of €171 million, for an equivalent combined EBITDA of around €12 million2.
2. Real Estate disposals for almost €80 million
In October and November 2024, emeis also finalized or secured disposals of real estate assets in Germany, Spain, Portugal, Belgium, the Netherlands and Ireland. Together, these transactions (9 assets and 4 plots of land) represent a total disposal volume of close to €80 million, for a capitalisation rate of around 5.5% on the leased scope. These transactions were carried out with real estate funds dedicated to healthcare real estate.