Quintain sells healthcare fund units for EUR 36m

UK property group Quintain on Friday announced the sale of units in the Quercus Healthcare Property Partnership fund for £31.3 mln (almost EUR 36 mln).

The units were sold to a number of UK institutional pension funds through the anonymous matched bargain dealing facility provided by Aviva Investors, Quintain's partner in the fund.

The units were sold at a 12% discount to the fund's reported NAV at July and a discount to Quintain's March valuation of £10.8 mln, representing a loss against book cost of £1.8 mln. In the last 12 months, the units delivered £2.5 mln of income to the group.

Quercus is the largest fund within Quintain Fund Management. At end-June 2009, it had £759.9 mln in funds under management and owned 264 assets, comprising nursing and residential care homes for the elderly, specialist care homes for those with long- term disabilities, private hospitals, and care villages. As a result of this disposal, Quintain's total holding in Quercus is reduced from 25.4% to 16% and the number of investors in the fund has increased to 50.

Quintain said the transaction was part of the company's strategy to 'repatriate cash and reduce gearing'. The proceeds of the disposal bring the total amount of cash repatriated since 1 April 2009 to over £42 mln, representing 85% of the £50 mln Quintain had targeted to raise in the year to end-March 2010. The total cash repatriated by the group since 1 April 2008 is now £140 mln.