LONDON (Alliance News) - CareTech Holdings PLC on Tuesday said it has raised GBP32.6 million in cash to further support its growth strategy through a ground rent agreement with funds managed by Alpha Real Capital LLP.
Under the terms of the agreement, the freehold interest in 24 CareTech properties will to be transferred to Alpha in exchange for GBP32.6 million in cash. The commencing rent will be GBP1.0 million per annum, which will rise with the retail price index on a yearly basis to up to 5% per annum.
The social care services provider said the properties are located across England and Scotland.
"CareTech's first ground rent transaction in February 2016 was truly innovative, raising GBP30 million which was invested into earnings enhancing acquisitions," said CareTech Executive Chair Farouq Sheikh.
"We are delighted to enter a further non-dilutive ground rent agreement with the Alpha to raise an additional GBP32.6 million in cash on more attractive terms when compared with our previous ground rent transaction and which provides further capital for investment," added Sheikh.
CareTech shares were trading 1.5% higher on Tuesday at 337.00 pence each.
