11th Dec 2006 07:01
CareCapital Group plc11 December 2006 For release at 0700h, 11 December 2006 CareCapital Group Plc ("CareCapital" or "the Company") Investment and Development Programme in Germany CareCapital Group Plc, the healthcare real estate company which listed on AIM inAugust (CARE), announces that it has completed the acquisition of a majormedical centre in Berlin as the first part of an initial €35 million investmentand development programme in Germany. This first investment, at an acquisition cost of • 9.2 million, is a 4,100 sq mmedical facility housing 34 tenants including physicians, dentists, a dentallab, diagnostic facilities, a pharmacy and other healthcare related retailers.An additional €4.2 million acquisition of a 2,800 sq m medical centre housing 25medical tenants situated to the South East of Berlin together with its adjoiningdevelopment site is scheduled for completion in February 2007. These two investments represent the initial stage of the €35 million programme,on which heads of terms have been agreed with a German developer/constructioncompany, with funding supplied by a major German bank. The programme currentlyincludes two further development sites in the Berlin area. Any additionalfunding for the programme will come from the Company's existing resources andfacilities. The programme enables CareCapital to capitalise on recent changes in Germanlegislation which favour primary care provision from large, integrated medicalcare centres. Michael Sinclair, Chairman, commented: "The investment and development programmein Germany follows extensive research, conducted by CareCapital over the pastmonths and represents an exciting opportunity for the Company. It will notimpact on our development programme in the UK which remains on target. "CareCapital will leverage its UK experience to manage and develop the mixedeconomy healthcare facilities in Germany that will increasingly become a featureof UK primary care provision as services are moved out of the hospitalenvironment to community locations in accordance with Government policy. Inaddition, the programme will bring us high quality assets at yieldssignificantly greater than those currently prevailing in the UK and withsimilarly comparable covenant profiles." For further information please visit www.carecapital.co.uk or contact: CareCapital Group Plc Daniel Stewart & Co. Plc Tavistock CommunicationsPaul Stacey, Managing Director Lindsay Mair, Director - Simon Hudson,Shareen Courtney, Marketing Corporate Finance Richard SunderlandTel: 020 7034 1949 Tel: 020 7776 6550 Tel: 020 7920 [email protected] [email protected] [email protected]@carecapital.co.uk [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AVO.L