Acquisition

24th Dec 2007 10:44

Public Service Properties Inv Ltd24 December 2007 24 December 2007 Public Service Properties Investments Limited ("PSPI" or "the Group") Acquisition in Germany and portfolio update PSPI (AIM: PSPI), the specialist European real estate investment and financingcompany, announces that it has completed the acquisition of a 75 bed care homein Berlin. The total purchase price is approximately €3.0 million, with PSPI'sshare of ownership to be finalised upon discussions with Elliott InternationalL.P, which has co-investment rights. The property is leased to Pflegeheim Huttenstrasse GmbH, a private operator ofcare homes in Germany, until 2013 when the current operator has an option torenew, subject to agreement on a revised rent. The home has been acquired atinitial gross and net yields of approximately 8.0% and 7.4%, respectively. Dueto the relatively short term of the lease, PSPI has also entered into anagreement with a separate operator to take over the lease in 2013 for a further20 years at an effective net yield of approximately 8.2%, should the currenttenant not take up the renewal option. Additionally, as a result of an easing in sterling Libor, PSPI has fixed itsinterest rate obligations until September 2012 on the £23.8 million of seniordebt used to acquire the Stonelea Healthcare homes in September 2007. As aresult, 100% of the senior debt used to finance the UK care home portfolio isagain fixed. On 21 December 2007, the £2.75 million mezzanine loan advanced to the EsquireConsolidated Group was prepaid yielding an effective return of approximately20%. The funds will be used for general working capital purposes. Patrick Hall, Chairman of PSPI, commented, "This second acquisition in Germanyreflects PSPI's continued progress in building an investment base on theContinent. The stand alone agreement in respect of expiry of the current leaseeffectively locks in, on a forward basis, an attractive cash yield. "As previously advised, the pipeline of potential acquisitions remains strongand we expect to announce further acquisitions early in the New Year." For further information, please contact: Ralph Beney/Dr Srinivas RP&C International Limited 31A St James's Square London SW1Y 4JR Tel: 44 (0) 20 7766 7000 Email:[email protected] Simon Hudson/Rachel DrysdaleTavistock Communications 131 Finsbury PavementLondon EC2A 1NTTel: 44 (0) 20 7920 3150 [email protected] Jeremy Ellis Evolution Securities 100 Wood StreetLondon EC2V 7AN Tel:44 (0) 20 7071 4300 This information is provided by RNS The company news service from the London Stock Exchange

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