Paris, the 27th of October 2025
🏥 **The nursing home real estate landscape in Europe has witnessed a seismic shift with Singapore-based Parkway Life REIT’s strategic acquisition of 11 French nursing homes from DomusVi Group for €111.2 million in October 2024.** This landmark transaction marks the REIT’s first foray into European markets and signals a new era of international capital flows into the continent’s healthcare real estate sector.
## 📊 **Key Takeaways in 30 Seconds**
• **Scale**: 11 EHPAD facilities totaling 850 beds across France
• **Investment**: €111.2 million acquisition completed in Q4 2024
• **Yield**: Attractive rental yields in a stable regulatory environment
• **Strategy**: First European expansion for Asia’s largest healthcare REIT
• **Market Signal**: Growing international appetite for European nursing home assets
• **Completion**: Transaction finalized in December 2024 with PAREF advisory support
## 🎯 **Transaction Overview: A Strategic European Entry**
### **The Acquisition Details**
Parkway Life REIT, Asia’s largest healthcare real estate investment trust with S$2.4 billion in assets, acquired 11 nursing homes classified as EHPADs (Établissements d’Hébergement pour Personnes Âgées Dépendantes) from DomusVi Group through a sale-leaseback arrangement. The properties span 42,630.8 square meters and house 850 beds across strategic locations in France.
**The transaction structure includes:**
– **Purchase price**: €111.2 million (approximately S$159.9 million)
– **Property type**: 11 operational nursing homes
– **Lease arrangement**: Long-term triple-net lease with DomusVi as operator
– **Advisory support**: PAREF provided investment advice and ongoing management services
– **Completion**: December 20, 2024
### **DomusVi: A Reliable Operating Partner** 🏢
DomusVi Group, one of France’s leading private nursing home operators, continues to operate all 11 facilities under long-term lease agreements. This arrangement provides Parkway Life REIT with stable, predictable rental income while allowing DomusVi to unlock capital for operational expansion and improvements.
DomusVi operates over 280 facilities across France, Spain, and other European markets, making it a substantial and experienced partner in the healthcare sector. The company’s strong operational track record and regulatory compliance history provide additional security for the investment.
## 🌍 **Market Context: Why European Nursing Homes Now?**
### **Demographic Tailwinds** 📈
Europe’s aging population presents compelling long-term investment fundamentals:
– **France’s 65+ population** is projected to reach 20.4 million by 2030 (up from 13.7 million in 2020)
– **Dependency ratios** continue rising, with 85+ age group growing fastest
– **Nursing home occupancy rates** in France average 95-97%, indicating strong demand
– **Government support** through social security systems provides revenue stability
### **Regulatory Environment** ⚖️
France’s nursing home sector benefits from a stable regulatory framework:
– **Standardized pricing** through regional health agencies (ARS)
– **Quality standards** enforced through regular inspections
– **Funding mechanisms** combining public and private sources
– **EHPAD classification** ensures operational standards and resident protection
### **Investment Climate Factors** 💰
**Favorable financing conditions** in late 2024 supported the transaction:
– ECB rate cuts to 3.25% in October 2024 improved borrowing costs
– European real estate yields remain attractive compared to other asset classes
– Healthcare real estate offers defensive characteristics during economic uncertainty
– Currency hedging opportunities for Asian investors in Euro-denominated assets
## 🔍 **Investment Analysis: Unpacking the Numbers**
### **Valuation Metrics**
**Price per bed analysis:**
– €111.2M ÷ 850 beds = **€130,824 per bed**
– Comparable French nursing home transactions range €120,000-€180,000 per bed
– The acquisition price appears competitive within current market parameters
**Price per square meter:**
– €111.2M ÷ 42,630.8 sqm = **€2,609 per sqm**
– French healthcare real estate averages €2,400-€3,200 per sqm depending on location and quality
### **Yield Expectations** 📊
While specific yield details remain confidential, industry analysis suggests:
– **Net initial yields** for French nursing homes typically range 4.5%-6.5%
– **Rental escalations** often linked to inflation indices (INSEE)
– **Lease terms** commonly span 12-18 years with renewal options
– **Triple-net structure** transfers operational costs to tenant (DomusVi)
### **Risk Assessment** ⚠️
**Positive factors:**
– Established operator with proven track record
– Stable regulatory environment in France
– Strong demographic demand drivers
– Geographic diversification for Parkway Life REIT
**Risk considerations:**
– Currency exposure to Euro fluctuations
– Regulatory changes in French healthcare policy
– Operator concentration risk with single tenant
– European economic conditions impact
## 🏗️ **Strategic Implications for Parkway Life REIT**
### **Portfolio Diversification** 🌐
This acquisition transforms Parkway Life REIT’s geographic footprint:
– **Previous focus**: Singapore, Japan, Malaysia primarily
– **New exposure**: European healthcare real estate markets
– **Portfolio size**: Expansion to 75 properties post-acquisition
– **Asset diversification**: Reduced concentration in Asian markets
### **Growth Platform** 🚀
The French acquisition establishes a European platform for future expansion:
– **Market knowledge** gained through PAREF partnership
– **Operational experience** in European regulatory environment
– **Network development** with local advisors and operators
– **Pipeline opportunities** for additional acquisitions
## 💼 **Implications for Nursing Home Investors**
### **Market Validation** ✅
**International interest confirms sector attractiveness:**
– Asian capital seeking European healthcare exposure
– Institutional investors recognizing nursing home fundamentals
– Cross-border transactions becoming more common
– Professional management and advisory services supporting deals
### **Valuation Benchmarks** 📏
**The transaction provides market pricing references:**
– €130,824 per bed for operational French EHPADs
– €2,609 per square meter for healthcare real estate
– Sale-leaseback structures attractive to operators needing capital
– Long-term lease arrangements supporting stable returns
### **Investment Considerations for Individual Investors** 🎯
**Purchase decisions:**
– **Location analysis**: Focus on regions with strong demographics
– **Operator quality**: Evaluate management track record and financial stability
– **Regulatory compliance**: Ensure EHPAD classification and standards adherence
– **Financing structure**: Consider long-term lease arrangements vs. direct operation
**Resale opportunities:**
– **International buyer interest**: Asian and other foreign investors active
– **Institutional demand**: REITs and funds seeking healthcare exposure
– **Portfolio assembly**: Multiple properties may attract larger buyers
– **Professional advisory**: Specialized brokers understanding cross-border transactions
## 📋 **Quick Check Before Buying/Selling**
**Due diligence essentials:**
– ✅ **Operator financial health** and lease guarantee strength
– ✅ **Regulatory compliance** history and current status
– ✅ **Market demographics** and competition analysis
– ✅ **Physical condition** and capital expenditure requirements
– ✅ **Lease terms** including escalations and renewal options
– ✅ **Exit strategy** considering international buyer interest
## 🔮 **Market Outlook: What’s Next?**
### **Continued International Interest** 🌏
The Parkway Life REIT transaction likely signals increased cross-border activity:
– **Other Asian REITs** may follow with European acquisitions
– **European operators** seeking capital through sale-leaseback arrangements
– **Institutional investors** recognizing healthcare real estate stability
– **Advisory firms** developing cross-border expertise and networks
### **Sector Consolidation** 🔄
Larger transactions may drive industry consolidation:
– **Portfolio sales** becoming more common than single-asset deals
– **Professional management** increasingly important for international investors
– **Standardization** of lease terms and operational metrics
– **Technology integration** supporting remote monitoring and management
## 💡 **Expert Opinion**
* »The Parkway Life REIT acquisition represents a maturation of the European nursing home investment market. International capital recognition validates the sector’s fundamentals while creating new opportunities for both buyers and sellers. The involvement of specialized advisors like PAREF demonstrates the importance of local expertise in cross-border healthcare real estate transactions. »*
## 🎯 **Investment Action Points**
**For potential buyers:**
– **Monitor** similar international transactions for pricing benchmarks
– **Evaluate** portfolio opportunities that might attract institutional interest
– **Consider** partnering with experienced operators for sale-leaseback structures
– **Assess** financing options taking advantage of current interest rate environment
**For current owners:**
– **Review** portfolio composition for potential consolidation opportunities
– **Evaluate** operator relationships and lease structures
– **Consider** professional valuation to understand current market positioning
– **Explore** international marketing channels for exit strategies
## 🏆 **Conclusion: A New Chapter for European Healthcare Real Estate**
Parkway Life REIT’s €111.2 million acquisition of 11 French nursing homes from DomusVi Group marks more than just a single transaction—it represents the evolution of European healthcare real estate into a truly international asset class. The successful completion of this cross-border deal, supported by specialized advisory services, demonstrates the sector’s growing sophistication and institutional appeal.
**For investors, this transaction provides valuable insights:**
– **Pricing benchmarks** for operational nursing home assets
– **Structure templates** for sale-leaseback arrangements
– **Market validation** from international institutional capital
– **Growth potential** in cross-border healthcare real estate investment
As demographic trends continue driving demand for quality nursing home facilities across Europe, transactions like this Parkway Life REIT acquisition illuminate the path forward for both domestic and international investors seeking exposure to this defensive, yield-generating asset class.
**The nursing home real estate sector’s fundamentals remain compelling: aging populations, regulatory stability, and institutional recognition combine to create an attractive investment environment for those with the expertise to navigate this specialized market.**
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*For professional guidance on nursing home real estate investments, including market analysis and transaction support, EHPAD INVEST provides independent advisory services to help investors navigate this complex but rewarding sector.*
**📞 Contact EHPAD INVEST for:**
– Portfolio valuation and market analysis
– Transaction advisory and due diligence support
– Operator evaluation and lease structure optimization
– International investor network access
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**Pour lire plus d’articles d’actualités EHPAD, consultez notre section [Actualités](https://www.ehpad-magazine.com/category/actualites/)**
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## 📚 **Sources**
– [Parkway Life REIT Official Announcement](https://plifereit.listedcompany.com/newsroom/20241022_093617_C2PU_FC4HY3L2LBS81BF9.1.pdf)
– [Business Times Singapore Coverage](https://www.businesstimes.com.sg/companies-markets/parkway-life-reit-acquires-11-nursing-homes-france-111-2-million-euros)
– [PAREF Advisory Announcement](https://paref.com/en/actualites/paref-assisted-parkway-life-reit-in-the-acquisition-and-management-of-its-first-european-portfolio/)
– [Candesic Market Analysis](https://candesic.com/wp-content/uploads/2024/11/1730127998517.pdf)
– [IPE Real Assets Coverage](https://realassets.ipe.com/news/plife-reit-makes-european-debut-with-111m-nursing-home-purchase/10076333.article)