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Axa Buys Abandoned Hospital Towers In Burjassot (Valencia)

22 September 2015 – Expansión

One of the concrete structures in Valencia, which has been abandoned for years, now has a new owner. The towers, located on the outskirts of Valencia, next to the Palacio de Congresos, were developed by Coresol and subsequently foreclosed by Bancaja and then Nau.

Now, Axa Real Estate has undertaken an investment on behalf of two of its clients: Medical Properties Trust, a US investor fund, which provides capital to healthcare operators, and Teacher Retirement System of Texas, a pension fund for teachers from the US state.

Axa Real Estate Investment Managers and IMED Hospitales have reached an agreement to develop the new ‘Hospital Privado IMED Valencia’, which will be located in Burjassot, Valencia near the V-35.

According to Nau’s own accounting records, an investment of €20 million will be required to complete the construction work; moreover, the 30-year finance lease contract is worth €28 million.

As a result of the agreement, Axa Real Estate Investment Managers will become the developer of the building and will undertake the necessary investment. Meanwhile, IMED Hospitales will take on the management of the health centre, which is expected to open within c. 20 months, announced the entity in a statement.

Axa Real Estate will embark on the development of the centre, transforming the current plot of land, which measures 4,300 m2 and contains the completed concrete structure, into a hospital with a surface area of 35,000 m2.

It is expected that the Hospital IMED Valencia will treat 150,000 patients per year…IMED and Axa Real Estate Investment intend to equip the complex with the most advanced technological resources to ensure the provision of a first class health service. (…).

Axa Real Estate holds the largest portfolio of real estate assets in Europe, with assets worth more than €60,000 million at the end of June 2015. It has more than 160 third party institutional clients all over the world, and also handles the management of the funds of 10 companies from Axa insurance. Axa Real Estate employs more than 500 professionals specialising in real estate across 23 countries.

Meanwhile, IMED Hospitales is a hospital group with 11 years of experience. It first opened its doors in Benidorm with the Hospital de Levante in 2004. Currently, the group operates four centres: two hospitals in Benidorm and Elche and two polyclinic centres in Teulada and Torrevieja. Since its inauguration, more than 350,000 patients have been treated in IMED, more than 55,000 surgical procedures have been performed and more than 2,500,000 clinical cases have been opened.

This acquisition was sourced and advised by Geskaria Real Estate Investments, a boutique advisory firm specialised in off-market investment opportunities in Spain, UK and Mexico.

Original story: Expansión

Translation: Carmel Drake

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