Résidence Marguerite (Meyzieu)



Beneficial interest AvH: 70.9%
AvH Contact: Jan Suykens

The HPA group comprises Residalya, which operates retirement homes in France, and Patrimoine & Santé, which owns most of those residences. Residalya specializes in accommodation and care of dependent elderly, with special emphasis on human relations between residents and staff.

Information from the 2016 annual report

In accordance with the agreements that were concluded with Eric Duval, AvH reduced its stake in Holding Groupe Duval from 37.8% (at year-end 2015) to 21.8% by swapping it for an additional 25% interest in the real estate company Patrimoine & Santé (from 22.5% at year-end 2015 to 47.5%). The interests of AvH, CEO Hervé Hardy and other management members in Residalya and Patrimoine & Santé were then contributed into a new structure, HPA, of which AvH owns 70.9%. HPA in turn owns 100% of the French retirement home operator Residalya and 73.7% (end 2016) of Patrimoine & Santé, which owns the real estate of most of the residences that are operated by Residalya. Early 2017, the final stake of 21.8% of AvH in Holding Groupe Duval was swapped against shares in Patrimoine & Santé. These shares will be contributed into HPA in 2017, whose stake in Patrimoine & Santé will increase to 100%.

From an organizational point of view, HPA, incorporated under Belgian law, was set up as an umbrella holding company bringing together and directing all the activities of Residalya (operation) and Patrimoine & Santé (real estate). The first phase of this legal restructuring process was carried out in June 2016 when the shareholders officially contributed shares to this holding. After this first phase, bilateral contracts in the form of a ‘Euro PP’ were signed with four banks and two investors. The objective was to refinance certain existing debts at a lower cost - thereby reducing the repayment costs - and to open a separate credit line for the development activities.

Financial overview 2016

HPA realized a turnover of 105.6 million euros in 2016, compared with 91.6 million euros in 2015 (Residalya only), an EBITDAR of 23.3 million euros and a net result of 2.9 million euros. This turnover increase is attributable to a higher occupancy rate (98.4%) and the expansion of the portfolio.

Operational overview 2016

Residalya continued to develop its activities in 2016. In January 2016, ‘La Demeure du Bois Ardent’ in Saint-Lô (76 beds) and ‘La Résidence Ambroise Paré’ (Residalya 60%) in Lyon (88 beds) were added to the network.

In July 2016, HPA fully integrated SCI Cigma du Tertre, the owner of the building complex in which a residential care centre with 60 beds (‘Le Cigma de Laval’) and a company crèche with 50 cots (‘Crèche du Tertre’) are operated. In the meantime, these two centres have also been integrated in the network of Residalya.

The Residalya network succeeded in 2016 in maintaining a constant level of activity. Over the whole 2016 financial year, the occupancy rate of the consolidated centres was 98.4% compared with 95.8% in 2015. The average rent, an important turnover element, also steadily increased this year. The rent is in line with the prices of competing centres in the neighbourhood.


Residalya forges ahead with its renovation programmes (La Lande St Martin, Garons) and its projects to improve the equipment of the centres. These investments are necessary to enable the company to make the difference with the competition. The summer of 2016 saw the start of extension works at the residence ‘Granvelle’. The capacity of this residential care centre is being expanded from 84 to 99 beds and 25 service flats. Completion is expected in 2018. It will be the first residence to be operated partly as a residential care centre, partly as a complex with service flats. Such a configuration will meet the specific needs of residents who are not staying in a medical establishment, but nevertheless feel safer in a centre that is adapted to their advanced age.

Several plans are being investigated as part of the further development based on a mixed model, with a combination of residential care centres and service flats: ‘Le Taillan Médoc’ in Gironde, ‘La Tour de Salvagny’ in the Rhône Valley, and ‘Oyonnax’ in Ain. These new projects will be further developed in the coming months. The new centres are expected to open between 2019 and 2020.

At year-end 2016, Residalya operated 32 residences spread across France, with a total of 2,439 beds.


Outlook 2017

HPA has also taken initiatives to expand its network through acquisitions. In 2016, two projects were initiated and completed in January 2017: the residences ‘Pyla sur Mer’ (60 beds, to be extended to 83 beds in the next few years by the transfer of beds) and ‘Villa Thalia’ (95 beds). Both projects allow HPA not only to acquire the operational activity and the buildings, but also to plan renovation or even extension works that open up the possibility of a future increase in the average rent.

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