12th Jan 2009 07:00
This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, South Africa, Australia, Japan or any jurisdiction in which the same would be unlawful. This announcement is not an offer of securities in the UK, United States, Canada, South Africa, Australia, Japan or any jurisdiction in which the same would be unlawful.
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For immediate release |
12 January 2009 |
Assura Group Limited ("Assura" or the "Company")
£17.6m sale of six non-core assets
Assura, one of the leading healthcare companies in the UK, has exchanged contracts with Medical Centre Developments Ltd and its sister company, Medical Centres Scotland Ltd, for the sale by Assura of six non-core properties from its medical property portfolio. Two assets are located in Wales and four are located in Scotland and their disposal is pursuant to the Company's objective to sell approximately 10 investment properties during 2009.
The aggregate sale price of £17.6m in cash reflects a net initial yield of 5.99% and a nominal equivalent yield of 6.17%. This represents a discount of circa 9% to the latest independent valuation of the assets at 30 September 2008. Proceeds will be used to reduce the Company's borrowings.
The sale of the properties is in line with Assura's revised business strategy, announced at the Company's interim results in November, to dispose of certain non-core property and pharmacy assets and concentrate resources on the development of medical and pharmacy services and property developments which are aligned to existing or potential GP Provider Company (GPCo) areas.
The transaction is scheduled to complete at the end of January.
Chief Executive, Richard Burrell commented: "Our ability to achieve disposals close to the September 2008 valuation despite the difficult property market underscores the defensive qualities of our primary healthcare property portfolio. These disposals have been made in line with our revised strategy to focus our resources on the Company's GPCos and to realise value from certain property and pharmacy asset disposals. The properties are all non-core assets, lying outside of existing or potential GPCo areas."
ENQUIRIES:
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Assura Richard Burrell, Nigel Rawlings, Louise Bathersby |
020 7107 3800 |
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Investec Securities Tim Pratelli |
020 7597 5153 |
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Cenkos Securities Nick Wells |
020 7397 8920 |
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Financial Dynamics David Yates, Ben Atwell |
020 7831 3113 |
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