Stella Management, founded in 2017, is expanding its portfolio of managed properties. Following a recent acquisition, the company now has a total of around thirty senior residences in France. Here are some insights from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
A recent entrant in the sector of serviced senior residences, Stella Management has been developed through successive acquisitions. When it was established, Stella acquired its first three properties and set itself ambitious goals: to manage around thirty residences by 2026. The company is well on its way to achieving this goal. In 2023, the group took control of four residences in Suresnes, Le Raincy, Montreuil and Strasbourg, previously managed by Les Essentielles, a subsidiary of Korian Group. At the end of 2024, Stella Management took over 22 retirement homes formerly managed by Réside Études Seniors under the name “Les Girandières”. The takeover took place under the auspices of the Paris Commercial Court, as Réside Études Seniors was struggling with heavy debts and had been in receivership since June 2024.
A distinctive model
Stella Management’s model focuses on serviced residences for independent seniors, offering a range of services including sports and cultural activities, as well as a concierge service. The group does not cater for serious pathologies or dependency situations, and most of the residences managed by Stella are located in city centres, offering residents an active lifestyle in an urban environment. The pricing structure is flexible, depending on the services selected (catering, cleaning, laundry, etc.), the location of the residence and the size of the flat chosen.
An industry in turmoil
In the face of ongoing challenges within the EPHAD (senior care) sector, Stella Management is highlighting its competitive pricing policy and a commitment to the well-being of seniors. This strategy follows the ‘Orpéa scandal’ uncovered in 2022 in an investigation by journalist Victor Castenet. The investigation revealed a system of widespread abuse in many of Orpea’s elderly care homes, as well as ethical and health problems linked to an obsession with profitability. In light of these developments, companies in the sector have intensified their efforts to reassure residents and their families.
A sector under pressure
France’s population is ageing. By 2022, the number of people living in France who were over 65 had reached almost 18 million, while the number of people aged over 75 is rising by 3% per year. This represents a lucrative market for senior residences, of which there is an increasing number. By 2022, the number of serviced senior residences in France had surpassed 1,000. This figure is set to rise to 1,500 by 2026. However, the sector still faces significant challenges, primarily the ongoing reliance on property and construction costs. Furthermore, the operating costs of these facilities remain high. Consequently, the sector must address these challenges by aligning its supply with the increasing demand, while adapting its pricing strategies to reflect the financial constraints of residents and their families.
Our experts at your service
In addition to the established market leaders, there is an emergence of smaller companies specialising in specific market segments. Examples include Stella Management, whose unique selling points include town-centre locations and personalised support. To achieve growth, these companies execute strategic acquisitions of competing serviced residences. This strategy is employed to mitigate the risk associated with construction while ensuring their continued market presence. Further developments in this sector are anticipated in the coming months. AURIS Finance’s sector-specialised experts will be by your side throughout your transaction.
