Medicx Fund Regulatory News (MXF)

27 Dec 2006 07:01

The MedicX Fund Limited27 December 2006 For immediate release 27 December 2006 MedicX Fund Limited ("MedicX Fund", "the Fund" or "the Company") Acquisition of Twelve New Properties MedicX Fund, the specialist investor in modern purpose built primary healthcareproperties which listed on the Official List of the London Stock Exchange on 2November 2006, today announces that it has completed the acquisition of afurther 11 new properties, nine of which have already been built with two underconstruction and due to complete in May and October 2007. The properties arecurrently owned by Medcentres 2006 Limited ("Medcentres 2006") which will beacquired by MedicX Fund for £10.3 million from NJ Arnold. Medcentres 2006 hasdebt net of cash of £26.3 million and a working capital balance of £0.6 million. In addition, MedicX Properties I Ltd (a subsidiary of the Fund) has contractedto acquire a property in Wisbech for £6 million directly from NJ Arnold. Theaggregate purchase price is £16.3 million with £15.8 million in cash and£510,000 in MedicX Fund shares issued at a price of £1.02 per share paid to NJArnold. The two projects under construction require a further £4.2m tocomplete; the total cost of the 12 acquired properties when all are complete istherefore £46.2m before purchaser costs. Medcentres 2006 Limited will berenamed MedicX Properties IV Ltd. The Fund will refinance the existing debtusing its £100 million loan from Norwich Union at its 5% fixed total borrowingcost. The 12 properties are located in Rugby, Norwich, Braintree, Gravesend,Lymington, Ringwood, Wareham, March, Bridport, Evesham, Verwood and Wisbech.The current rent of the 12 properties is £2,789,783 per annum in aggregate andthe properties have been valued by DTZ Debenham Tie Leung, valuers to the MedicXFund, at £49.6 million net of 5.75% purchaser costs. The current rent andvaluation assumed the two under construction are completed. The 12 new sitesbring the total number of primary healthcare properties owned by the MedicX Fundto 34. In addition, the MedicX Group has secured an exclusive option to forward fundnew properties developed by NJ Arnold and Medcentres until 1 January 2009 whichcan be extended with the agreement of both parties. This acquisition was not included in the pipeline reported in the Medicx FundIPO prospectus but is in line with the strategy of the business. Keith Maddin, Chairman of MedicX Group, said: "We are delighted to have finishedthe year on such a positive note. In our first two months the MedicX Fund hasassembled a portfolio of 34 modern primary healthcare properties spread acrossEngland and Wales. The £67.8 million invested (before purchaser costs and ontop of the £46 million initial portfolio) in new properties exceeds the targetassumed for the first twelve months presented in the prospectus and has beenvalued by DTZ at £74.3 million. The Fund's pipeline has been enhanced followingthe recent transactions with Oakapple and Medcentres. We look forward to 2007and the further opportunities that may arise." End For further information please contact: MedicX Group +44(0) 1252 704 272Keith Maddin, ChairmanMike Adams, Managing Director Buchanan Communications +44 (0) 20 7466 5000Charles Ryland / Lisa Baderoon / Mary-Jane Johnson This information is provided by RNS The company news service from the London Stock Exchange