30th Jun 2008 07:00
30 June 2008
Public Service Properties Investments Limited
("PSPI" or "the Group")
Acquisition of care home portfolio in Germany
PSPI (AIM: PSPI), the specialist European real estate investment and financing company, announces that it has exchanged contracts to acquire a portfolio of six care homes in Germany which will be leased to the Marseille Kliniken group. The portfolio consists of 403 care home beds and 154 assisted living places. The total cash consideration, including costs, is approximately €36.3 million. Completion is scheduled for today. The acquisition will be funded by the Group out of a new Euro facility and from the Group's cash and working capital reserves.
The portfolio has been acquired at a net initial yield of approximately 7.3%. The leases with Marseille Kliniken will have an initial term of 20 years with renewal options for an additional 5 or 10 years, exercisable at the discretion of the lessee. The aggregate initial rent has been set at €2.65 million and the obligations of the lessees are guaranteed by the parent company of the Marseille Kliniken group. The rent under the leases will increase quadrennially by 70% of the German Consumer Price Index.
Marseille Kliniken is one of Germany's leading care home operators with projected revenues of approximately €240 million for the current financial year. It is listed on the Xetra, Frankfurt and Hamburg stock exchanges.
The properties are located in northern and central Germany with one property located in Berlin.
Patrick Hall, Chairman of PSPI, commented, "This substantial acquisition in Germany reflects PSPI's continued progress in building an investment base on the Continent. Following this acquisition, we now own a portfolio of 14 properties across Germany, consisting of 882 beds, including the assisted living services. This transaction brings our total investment in Germany to €57 million with aggregate initial rental income of €4.2 million per annum.
"Our strategy is to acquire assets of the highest quality, at excellent prices where strong occupancy can be forecast. This portfolio is consistent with our requirements and we are delighted to have secured the purchase.
"Our pipeline of potential acquisitions remains strong and we expect to announce further acquisitions later in the year, subject to satisfactory market conditions."
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 / Paul Youens/ Gemma Bradley Tavistock Communications 131 Finsbury Pavement London EC2A 1NT Tel: 44 (0) 20 7920 3150 |
Jeremy Ellis Evolution Securities 100 Wood Street London EC2V 7AN Tel: 44 (0) 20 7071 4300 |
Related Shares:
PSPI.L