23rd Jul 2014 08:21
LONDON (Alliance News) - Assura Group Ltd said Wednesday that it has acquired the entire issued share capital of Park Medical Services Ltd.
The property has been acquired from the GPs who originally developed the medical centre, said Assura Group, for a total cost of GBP12.3 million with passing rent of GBP0.8 million, which equates to a rental yield of 6.5%.
92% of the income is contracted to GPs or NHS bodies and has a weighted average unexpired lease term of 14.1 years, said Assura.
The net consideration is GBP2.7 million in cash for the equity of the acquired business. Assura is assuming the existing debt of GBP8.7 million which has a maturity of 11.6 years and an average fixed interest rate of 6%. The company said a provision of GBP0.9m has been reflected in the purchase price, representing the full cost of re-pricing the debt to current market rates, providing the company with the flexibility to re-price or redeem efficiently in the future, it said.
Park Medical owns The One Life Building in Middlesbrough, a 3,300 square metre property which houses a GP practice, pharmacy, day case operating theatre, community services, mammography and x-ray services along with other outpatient services.
Following the transaction Assura now owns 233 medical centres and has a contracted rent roll of GBP48.9 million.
Shares in Assura Group were Wednesday trading marginally higher, up 0.55% at 45.50 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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