3rd Nov 2014 07:51
LONDON (Alliance News) - Public Service Properties Investments Ltd Monday said it has inked a deal to dispose of a German partnership that owns two care home properties in Langen and Luzerath, both in Germany, for EUR13.4 million in cash.
In a statement, Public Service Properties Investments said it intends to use EUR10.7 million of the sale to an unnamed buyer to repay debt secured against properties leased to Marseille Kliniken AG, settle transaction costs, including prepayment penalties, and pay interest rate swap breakage costs. The remainder will be used for general working capital purposes, including a GBP500,000 repayment of debt secured against UK investment properties.
"The company is pleased to announce the conclusion of this sale after protracted negotiations with the buyer. The planned use of the sale proceeds reduces the aggregate loan to value for the retained portfolios in Germany and the UK from 37.7% to 31.3%," Chairman Patrick Hall said in a statement.
"The company continues to test the market for all of its assets and will make further announcements as appropriate," Hall added.
Public Service Properties Investments said the sale of the care home properties, leased to MK, is expected to complete within six weeks, although 94% of the price tag has already been received by the company.
The sale price represents a discount of 1.8% to the latest independent valuation, net of buyer's costs, of the assets being sold, according to Public Service Properties Investments. The last independent valuation was undertaken by Colliers International. However, the sale was made at a 7.5% discount to the carrying value of the assets set out in the company's unaudited interim results for the six months ended June 30, gross of estimated buyer's costs.
The two care homes generated net rental income of EUR1.3 million and a profit of about EUR700,000 in 2013.
By Samuel Agini; [email protected]; @samuelagini
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