Secure Income REIT in £347m hospital sell-off
Secure Income REIT has sold eight of its 19 private hospitals for £347m to Medical Properties Trust.
The hospitals are let to Ramsay Health Care and have a current net rent payable of £16m per annum.
The assets sold to the US specialist healthcare REIT represent 31% of Ramsay hospitals owned by the company at their 31 December 2018 valuations.
Secure Income REIT has sold eight of its 19 private hospitals for £347m to Medical Properties Trust.
The hospitals are let to Ramsay Health Care and have a current net rent payable of £16m per annum.
The assets sold to the US specialist healthcare REIT represent 31% of Ramsay hospitals owned by the company at their 31 December 2018 valuations.
The eight hospitals are Ashtead, Berkshire Independent, Euxton Hall, Mount Stuart, North Downs, Renacres, Rowley and Winfield.
Completion is scheduled for 16 August 2019.
Secure Income said the disposal would reduce the group’s net debt by approximately £316m, which will also reduce the group’s net loan-to-value ratio from 43% at 31 December 2018 to 33.5%.
The firm said it will increase EPRA NAV by an estimated 6.9p per share after payment of estimated debt redemption costs payable on completion and all other costs of sale, estimated at £32.4m.
Secure Income chairman Martin Moore said: “This attractive offer, which represents a 19% premium above the December 2018 valuation, allows shareholders to realise some upside while still retaining a core holding of 11 high-quality acute hospitals.
“We remain alert to opportunities to redeploy the capital raised when appropriate and, in the meantime, will top up shareholders’ income returns to the pre-transaction levels.”
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