TIDMMXF
RNS Number : 8439Q
The MedicX Fund Limited
08 June 2018
Press Release
For immediate release
8 June 2018
MedicX Fund Limited
("MedicX", "the Fund" or "the Company")
Acquisition of 12 modern purpose-built medical centres
MedicX, (LSE: MXF), the specialist primary care infrastructure
investor in modern, purpose-built, primary healthcare properties in
the United Kingdom and Ireland is pleased to announce that it has
today completed the off-market acquisition of a portfolio of 12
operational and fully let primary care medical centres for a price
of GBP63.8 million, adding 8.9% to the Company's portfolio
value.
The acquired portfolio has a gross rent roll of approximately
GBP3.0 million per annum and a weighted average unexpired lease
term of 14 years with an average lot size of GBP5.3 million.
The purchase was made by way of a corporate acquisition of One
Medical Property Holdings Limited and its subsidiaries for
consideration of GBP27.3 million (including working capital of
GBP0.5m and excluding a retention of GBP0.2m), and the assumption
of existing third-party debt facilities at fair value of
approximately GBP36.7 million. Deal costs were GBP1.5m. The GBP27.3
million consideration was settled through the issuance to the
vendor of 3.75 million Ordinary Shares in MedicX out of treasury at
a price per share of 80.0 pence, and GBP24.3 million in cash, of
which GBP23.0 million was drawn by the Company under its accordion
facility with RBS at a margin of 2% over LIBOR.
This portfolio of high quality assets is located throughout
Northern England with approximately 25% of the rent profile
benefiting from RPI indexed reviews. Ten of the twelve properties
within the acquired portfolio are modern, purpose built
(representing 95% by value) with an average age of under 5.5 years.
This addition will increase MedicX's total portfolio to 166
properties, of which 163 are complete and operational, and three
are under construction. Following this transaction, the Fund's
total annualised rent roll for all properties will increase by
7.3%, from GBP40.9 million to GBP43.9 million.
The acquired debt has a face value of GBP29.8 million, an
average unexpired term of 11.7 years and a weighted average cost of
5.49%. Under the deal terms MedicX will take and record this debt
at its fair value of GBP36.7 million, (the c. GBP6.9 million
adjustment reflecting current break costs and accrued interest),
thereby reducing the effective interest rate to a current market
rate.
Following the acquisition, MedicX will have total debt
facilities of GBP436.0 million with an estimated weighted average
cost of 4.26% and term of 11.5 years. The Company's adjusted
gearing (percentage of net debt to gross assets less cash) has
increased to 53.7%.
Helen Mahy, Chairman of MedicX, said
"I am delighted to announce this significant acquisition of a
portfolio of high quality, purpose-built primary care centres. It
is in line with our strategy of focusing on larger and locally
strategic premises, which will deliver primary care services beyond
the term of the existing occupational leases. This off-market
transaction is testament to the depth and quality of our
relationships within the sector. The Company has further pipeline
opportunities at various stages of legal due diligence which it
expects to complete in the coming months. These will bring further
scale benefits and complement the acquired portfolio which provides
care for over 150,000 patients."
Michael Beverley, majority shareholder of One Medical Property
Holdings, said
"I am pleased to have completed the sale of our portfolio to a
specialist primary care investor who takes a long-term view and
focusses on high quality, purpose-built medical centres. At the
same time, I welcome the opportunity to take a stake in MedicX as
it continues to grow and I have confidence in the management team
to continue delivering shareholder value."
End
For further information please contact:
Octopus Healthcare Adviser Ltd +44 (0) 345 0404 5555
Octopus Healthcare +44 (0) 20 3142 4820
Mike Adams, Executive Chairman
Buchanan +44 (0) 20 7466 5000
Charles Ryland/Henry Wilson
Information on MedicX Fund Limited
MedicX Fund Limited ("MXF", "MedicX Fund", the "Fund" or the
"Company", or together with its subsidiaries, the "Group") is the
specialist primary care infrastructure investor in modern,
purpose-built primary healthcare properties in the United Kingdom
and Ireland, listed on the London Stock Exchange, with a portfolio
comprising 166 properties.
The Investment Adviser to the Company is Octopus Healthcare
Adviser Ltd, which is part of the Octopus Healthcare group. Octopus
Healthcare invests in and develops properties as well as creating
partnerships to deliver innovative healthcare buildings to improve
the health, wealth and wellbeing of the UK. It currently manages
over GBP1.4 billion of healthcare investments across a number of
platforms, with a focus on five core areas: GP surgeries, care
homes, special education schools, retirement housing and private
hospitals. Octopus Healthcare is part of the Octopus group, a
fast-growing UK fund management business with leading positions in
several specialist sectors including healthcare property, energy,
property finance and smaller company investing. Octopus manages
GBP7.7 billion of funds for more than 50,000 retail and
institutional investors as well as supplying energy to more than
180,000 customers.
Octopus Healthcare Adviser Ltd is authorised and regulated by
the Financial Conduct Authority.
The Company's website address is www.medicxfund.com. Neither the
contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other
website), nor the contents of any website accessible from
hyperlinks within this announcement, are incorporated into, or
forms part of, this announcement.
The Company's Legal Entity Identifier is
2138008POF35FTNFCB25
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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