26 Jun 2015 07:00
For immediate release
26 June 2015
MedicX Fund Limited
("MedicX Fund", "the Fund" or "the Company")
Acquisition of new primary healthcare centre in Ireland
MedicX Fund, (LSE: MXF), the specialist primary care infrastructure investor in modern, purpose-built, primary healthcare properties in the United Kingdom, is pleased to announce that it has contracted to acquire, by way of forward funding, a new primary healthcare medical centre in Mullingar, Westmeath. The property is due to be completed in August 2016.
The completed development will be let to a number of GPs and the Health Service Executive (the Irish NHS equivalent). The GP and Health Service Executive leases will be for a term of 15 and 25 years respectively from practical completion. The rent is subject to five-yearly CPI reviews. The total acquisition cost of the property is €10.1 million.
This is the Company's first acquisition in Ireland, and has followed a significant due diligence exercise into the opportunities available in the Irish healthcare property market. It is the belief of Octopus Healthcare Adviser and the Board that Ireland offers good yields for quality properties, let on long leases, generating principally government backed income, making Irish healthcare property opportunities an attractive fit with MedicX Fund's investment objective. The yields available in Ireland are currently higher than are available for similar properties in the UK. It is anticipated that any investment in Ireland will be part funded through additional borrowings drawn in Euros, thereby providing a natural partial hedge against Euro currency movements.
The Company expects to acquire further healthcare properties in Ireland in the future. In the event that such investment opportunities become material in the context of the Company's property portfolio, shareholder approval will be sought to continue making such acquisitions through an amendment to the Company's investment policy setting out a limit as to how much may be invested outside the UK.
The MedicX Fund's total property portfolio comprises 143 properties throughout the United Kingdom and Ireland of which 134 are operational and fully let, with nine under construction. The annualised rent roll for all properties is £34.4 million.
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For further information please contact:
MedicX Fund +44 (0) 1481 723 450
David Staples, Chairman
Octopus Healthcare Group +44 (0) 1483 869 500
Mike Adams, Chief Executive Officer
Mark Osmond, Chief Financial Officer
Canaccord +44 (0) 20 7466 5000
Andrew Zychowski/Helen Goldsmith
Buchanan +44 (0) 20 7466 5000
Charles Ryland/Sophie McNulty
Information on MedicX Fund Limited
MedicX Fund Limited ("MXF", "MedicX Fund", "the Fund" or "the Company", or together with its subsidiaries, the "Group") is the specialist primary care infrastructure investor in modern, purpose-built primary healthcare properties in the United Kingdom, listed on the London Stock Exchange, with a portfolio comprising 143 properties.
The Investment Adviser to the Company is Octopus Healthcare Adviser Ltd, which is authorised and regulated by the Financial Conduct Authority and is a subsidiary of the Octopus Healthcare Group. The Octopus Healthcare Group is a specialist investor, developer and manager of healthcare properties with 35 people operating across the UK.
The Company's website address is www.medicxfund.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website), nor the contents of any website accessible from hyperlinks within this announcement, are incorporated into, or forms part of, this announcement.