12 Jun 2013 07:00
12 June 2013
Ashley House plc
Appointment as Asset Manager
Sale of Projects to New Investment Partner
Ashley House plc ("Ashley House" or the "Company") the health and community care property partner is pleased to announce that it has entered into agreements with a newly established investment company, Invescare Limited ("Invescare"). The Company has been appointed as Invescare's Asset Manager and has agreed the sale of an initial tranche of three developments to Invescare.
Appointment as Asset Manager
Ashley House has been appointed as Asset Manager to Invescare. Under the agreement Ashley House will manage Invescare's assets and provide property and financial management to the company.
This management arrangement will allow Invescare to operate with minimal overhead yet benefit from Ashley House's significant and successful experience as an asset manager. Ashley House's revenues from this activity will be initially small but will grow with Invescare's asset base.
The Board of Ashley House is cognisant of the potential conflict of interest that may arise in transactions between the two companies, due both to Ashley House's role as Asset Manager to Invescare, and Stephen Minion's role as a director of both Ashley House and Invescare. The Board is satisfied that appropriate procedures have been put in place to manage this conflict including transactions between the two companies being agreed with reference to market value, and Stephen Minion not participating in decisions made by the Board of Ashley House in relation to Invescare.
Investment Partner
Ashley House will offer Invescare the opportunity to invest in suitable projects it develops. Invescare has initially agreed to be the investor in three of Ashley House's projects.
The three schemes in question are the recently finished pathology laboratory in Taunton,
an extra care scheme in Grimsby which has reached financial close and a GP surgery in Peterborough, which is shortly due to reach financial close. The Grimsby and Peterborough schemes are expected to be built out over the next 18 months. Under these agreements Invescare has now made a first payment to Ashley House of £3m.
The establishment of Invescare is an important step forwards for Ashley House in broadening the base of investors willing and able to invest in the projects the Company develops.
Jonathan Holmes, Ashley House Chief Executive commented "We are delighted to be working with Invescare. Ashley House has a significant pipeline of projects and our management agreement with Invescare ensures a mutually beneficial relationship for many years to come."
Enquiries:
Ashley House plc 01628 600 340
Jonathan Holmes, Chief Executive
Antony Walters, Finance Director
WH Ireland Ltd. 0207 220 1666
(Nominated Adviser and broker to Ashley House plc)
Adrian Hadden
Nick Field
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NOTES TO EDITORS
About Invescare
Invescare has been established to invest in health and social care projects and will focus upon projects being developed by Ashley House. Investors in Invescare include Stephen Minion, Non-Executive Deputy Chairman of Ashley House. Stephen also sits on the Board of Invescare. Neither Stephen Minion nor any other Director of Ashley House, alone or in combination, owns more than 20% of Invescare.