11th Sep 2013 10:35
LONDON (Alliance News) - Assura Group Limited Wednesday said it has acquired 32 medical centres in a GBP62.5 million deal to buy the Trinity Medical Properties and Trinity Medical Developments businesses from its owners Trinity.
The primary care property investor and developer said the portfolio has a rent roll of GBP4 million with a weighted average unexpired lease term of over 16 years.
It is currently let to GPs, NHS Bodies and pharmacy operators on industry standard open market rent review terms, which Assura said provides an excellent covenant and exposure to future rental growth.
As a qualifying real estate investment trust, Assura is exempt from tax both on the profits of the Trinity business and on a latent capital gains liability of about GBP2 million, while it expects to deliver overhead savings of GBP100,000.
It also estimates a reduction in the interest charge arising on consolidation to be GBP100,000.
It will pay GBP6.9 million in cash for the equity of the acquired businesses, which is after a provision of GBP1.7 million to allow for the potential re-financing costs of the debt.
Assura is assuming Trinity's existing debt of GBP52.1 million, other short term creditors of approximately GBP1.4 million and expects to incur transaction costs of GBP400,000.
Assura shares were trading unchanged at 34.75 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Assura