Capital investment: selling the crown jewels?
Paris hospital selling real estate to fund refurbishment
Agendas colliding: while the Decide Capital Investment in Health working group is busy sorting out the main challenges of capital projects and infrastructure value chain, including the generation of additional revenue for health assets, a singular project drew our attention.
A hospital in Paris, owner of the Hôtel Scipion, the mansion which belonged to Queen Caterina di Medici’s banker and built in the 16th century, sold it to an investment company (GDG Investments) for a staggering $60 million.
This sum will help renovate and refurbish the Hôtel Dieu, the oldest Parisian hospital in order to restructure most of its clinical activities. In the meantime, a third of the hospital was leased in 2019 to real estate developer Novaxia through a long-term lease (80 years) against an estimated revenue circa €240 million.
This concession arrangement may enable to adapt the healthcare offering while adapting grandiose buildings which are not necessarily fit for purpose in the 21st century. An example of optimization of healthcare real estate?