18th Sep 2007 07:01
Southern Cross Healthcare Grp PLC18 September 2007 Southern Cross Healthcare Group PLC Southern Cross enters management agreement to operate 39 care homes and 1,990 beds Tuesday, 18 September 2007 - Southern Cross Healthcare Group PLC (LSE: SCHE)('Southern Cross' or the 'Company'), the UK's largest care home provider,announces today that it has entered a management agreement with the BondcareGroup ("Bondcare") for the management of 39 elderly care homes containing 1,990beds, which are to be integrated within the Southern Cross and Ashbourne SeniorLiving brands. Bondcare has retained the freeholds of the care homes and when the transactionis completed, following the re-registration of the homes with the Commission forSocial Care Inspection ("CSCI"), 30 year operating leases, with fixed annualuplifts, will be executed with Southern Cross. In line with the Company'sgrowth strategy, the operating businesses of the Bondcare homes will be acquiredfor a nominal consideration. The Company also announces today the acquisition of a single care home inHarrogate, Yorkshire with 106 beds to be integrated within the Ashbourne SeniorLiving brand. Following today's announcement Southern Cross operates 36,186 beds in 710 carehomes. During the current financial year the Company has added 7,269 beds tothe portfolio through acquisition and development, far exceeding the initialtarget set out at IPO of 1,200 beds per annum. Commenting on today's announcement, Philip Scott, Chief Executive of SouthernCross, said: "The past twelve months has seen the Company complete numerousacquisitions, affirming our strategy to lead the consolidation of the UK elderlycare home market. Today's announcement adds over 6% to bed capacity anddemonstrates the flexibility in our acquisition model through direct tenancyarrangements. Bondcare's 39 care homes are a high quality addition to ourportfolio in both North-East and South-East England, which we look forward tointegrating into our Southern Cross and Ashbourne Senior Living brands." - ends - Enquiries: Southern Cross Healthcare Group PLC Tel: +44 (0)1325 351100Philip Scott, Chief ExecutiveGraham Sizer, Finance Director Financial Dynamics Tel: +44 (0)20 7831 3113David YatesDeborah ScottEmma Thompson Notes to Editors About Southern Cross Southern Cross is, in terms of number of beds, the largest UK provider of carehome services for the elderly and a major provider of specialist services forpeople with physical and/or learning disabilities. The Company's care homes forthe elderly operate under two distinct brands: Southern Cross Healthcare andAshbourne Senior Living. Both brands provide a range of social and personalcare services and nursing care services for elderly people with physicalfrailties and differing forms of dementia. The Company's specialist servicesoperate under the Active Care Partnerships brand and provide long-term careservices for people with physical and/or learning disabilities and for youngerpeople with complex forms of challenging behaviour. Southern Cross is focused on providing high quality care in well investedfacilities, seeking to be the home of choice in each local community in which itoperates. The Company provides care services for most of the local authoritiesin the UK which, together with the NHS, represent over circa 70% of theCompany's revenues. Its care home portfolio is largely purpose-built with ahigh percentage of single occupancy rooms and rooms with ensuite bathrooms.Occupancy levels in its core elderly segment are consistently in excess of 90%. This announcement includes statements that are, or may deemed to be, "forwardlooking statements". These forward looking statements can be identified by theuse of forward looking terminology, including the terms "believes", "estimates","plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparableterminology. These forward looking statements include matters that are nothistorical facts and include statements regarding the Company's intentions,beliefs or current expectations concerning, among other things, the Company'sresults of operations, financial condition, liquidity, prospects, growth,strategies and the outlook on the care home industry. By their nature, forwardlooking statements involve risk and uncertainty because they relate to futureevents and circumstances. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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