Disposal

RNS Number : 7954G
CareCapital Group plc
08 February 2010
 



8 February 2010

 

CARECAPITAL GROUP PLC

("CareCapital" or "the Company")

 

Sale of Part of UK Property Portfolio

 

CareCapital Group plc (AIM: CARE), the healthcare real estate developer and investor, announces that it has disposed of part of its UK property portfolio, comprising 14 primary care investment properties, through the sale of Sinclair Montrose Properties Limited ("SMP"), a wholly owned subsidiary of CareCapital (the "Disposal"), to Primary Health Investment Properties Limited ("PHP") for a consideration of £23.5 million payable in cash on completion.

 

The net cash proceeds, after the repayment of the senior debt within the SMP Group of Companies associated with these properties, will amount to approximately £4.4 million from which sum the majority of the Company's short term financing will be repaid with the balance to be used as working capital.

 

At 30 September 2009, the properties included in the Disposal were valued at £22.95 million as included in CareCapital's interim accounts.  The properties' current rental income is £1.409 million per annum.

 

Additionally, CareCapital has entered into an agreement with PHP that provides for the funding and disposal on completion of further primary health care properties in CareCapital's development pipeline.

 

Dr Michael Sinclair, Chairman of CareCapital, commented: "This transaction has strengthened our balance sheet and provides a base from which to progress the opportunities in the remaining development pipeline.  This pipeline, as previously disclosed, has a combined developed value of over £80 million.

 

"The Company's current development at Adlershof in Berlin, which is fully pre-let, is scheduled for completion next month and, combined with the existing Adlershof building, will provide one of the most important medical buildings in Germany with a total of over 8,000 square metres of space let to over 50 medical tenants.  On completion of this building, the gross value of CareCapital's current portfolio of investment properties and completed developments will be approximately £34 million representing a net asset value for those assets in excess of £10.5 million."

 

For further information please visit www.carecapital.co.uk or contact:

 

CareCapital Group Plc

Daniel Stewart & Co. Plc

Tavistock Communications

 

 

Paul Stacey, Chief Executive

Steve Wilden, Finance Director

Simon Leathers

Simon Hudson

Paul Young

 

Tel: 020 7034 1949

Tel: 020 7776 6550

Tel: 020 7920 3150

 

pstacey@carecapital.co.uk

swilden@carecapital.co.uk

simon.leathers@danielstewart.co.uk

shudson@tavistock.co.uk

pyoung@tavistock.co.uk

 

-ends-


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DISKMGGZNNMGGZM
UK 100

Latest directors dealings