For the Dependency care division, Foncière Siscare’s development strategy is based on the growing need for adult care services and the growing predisposition of incumbent operators, notably amongst the largest players, to outsource their real estate assets and therefore recover financial resources to support their growth (especially abroad). The 10 leading private operators in the French health care sector still hold close to 5 billion euros of real estate assets, across all types of assets, in other words, a very high outsourcing potential for real estate investors in the health sector.
Foncière Siscare is also available to invest in building new facilities or to carry out major renovation, modernisation or extension works for existing facilities at the request of its tenants. Projects such as these are very favourable opportunities to grow its rental income and extend existing leases.
Finally, budgetary constraints weigh on public finances, limiting the development of new facilities in France, and the Agences Régionales de Santé (ARS) (government regional health agencies) are issuing very few calls for projects. This paucity is forcing operators to extend their business internationally. Fonciere Siscare has already identified 6 projects to develop properties for dependency care in Europe.
For the Childcare division, Foncière Siscare will continue its investments, remaining focussed on France, where the growth potential for private nurseries is very high due to several factors:
- paucity of supply
- population growth
- the growth of company nurseries (high employment rate for women, reduction in paid parental leave)
- parents are increasingly interested in building social skills for their children at a very young age
- municipalities are privatising childcare under a public service contracts (private nurseries still represent only 10% of total places).
Foncière Siscare will continue its strategic partnership with Crèches de France, France’s 6th largest private operator of Childcare facilities, which has the same controlling shareholders, the SIS Group. Crèches de France is in fact well positioned to capture a part of the strong growth in the market, thanks to its approach to quality, its innovative, demanding education project and its tailored solutions for businesses and local authorities.
Because of its expertise in real estate and provision of tailored financial solutions, the Group also intends to talk to the many private operators in the sector to offer them the possibility of outsourcing their real estate assets and reduce the capital intensity of their business models.