Korian enters into partnership with CAREIT and Primonial REIM

On October 15th, Korian, Europe’s leader of senior support services company, signed a development partnership with CAREIT, specialised in real estate for health and social care facilities and Primonial REIM, a portfolio manager and Korian’s largest lessor with around fifty facilities in France and Germany.

This partnership is designed to enable the Korian group to build new facilities in France by transferring, combining or creating new post-acute and rehabilitation care units and long-term care nursing homes. It has seven operations lined up so far.

Under the agreement, CAREIT will be awarded a real estate development contract or an off-plan sales contract (respectively known as CPI and VEFA contracts in France) and will assist with the design and build of the new Korian establishments.

The VEFA off-plan sales contract will give Primonial REIM the opportunity to buy some or all of the new facilities and grant leases to the Korian group under an off-plan lease agreement (BEFA).

This partnership is in line with Korian’s strategy to expand and restructure its European real estate portfolio, with fifty new build developments expected by 2022.

“This partnership, which combines CAREIT’s real estate development expertise and Primonial REIM’s finance expertise, will enable Korian to ramp up the restructuring of its health and social care properties in France more quickly and provide its patients, residents and employees with a gold-standard care environment. It is another illustration of our “asset smart” real estate strategy, which helps to consolidate our growth potential and create value”, explains Sophie Boissard, Korian group's General Manager.