Icade signed a memorandum of understanding to spend €112 million on the development of seven nursing homes in northern Italy.

The portfolio encompasses 1,020 beds across seven facilities, spanning 52,200 square meters, in the Piedmont, Veneto and Lombardy regions. The properties, scheduled for completion between 2019- and 2021-end, are pre-leased on 18-year terms and will be operated by Gheron Group.

Icade will acquire the nursing homes upon completion, subject to securing customary permits for their operation, with the final purchase deal expected to be signed in the fourth quarter.

The deal, agreed with a property development fund managed by Italian asset manager Numeria, is part of the French real estate investment trust's international diversification strategy for its healthcare property investments.