MedicX buys 12 primary care medical centres for £63.8m

MedicX Fund has increased the value of its portfolio by 8.9% with the acquisition of a portfolio of 12 primary care medical centres for £63.8m (€72.3m).

The specialist primary care infrastructure investor said it bought One Medical Property Holdings and its subsidiaries for £27.3m and took over existing third-party debt facilities of around £36.7m.

MedicX said the £27.3m consideration was settled by issuing 3.75m shares in MedicX out of treasury at 80.0 pence a share to the vendor, and £24.3m in cash, of which £23m was drawn by the company under its accordion facility with RBS.

The operational and fully let portfolio of assets is located throughout Northern England. Ten of the twelve properties within the acquired portfolio are modern, purpose built (representing 95% by value) with an average age of under 5.5 years.

This addition will increase MedicX’s total portfolio to 166 properties, of which 163 are complete and operational, and three are under construction.

The acquisition adds 8.9% to the company’s portfolio value, it said. As at the March 31, the company’s portfolio was valued at £719.7m.

Following this transaction, the Fund’s total annualised rent roll for all properties will increase by 7.3%, from £40.9m to £43.9m, it said.

Helen Mahy, Chairman of MedicX, said: “I am delighted to announce this significant acquisition of a portfolio of high quality, purpose-built primary care centres. It is in line with our strategy of focusing on larger and locally strategic premises, which will deliver primary care services beyond the term of the existing occupational leases.

Mahy said the company has further pipeline opportunities at various stages of legal due diligence which it expects to complete in the coming months.

“These will bring further scale benefits and complement the acquired portfolio which provides care for over 150,000 patients.”

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