Medicx Fund Regulatory News (MXF)

MedicX Fund Limited

("MedicX Fund", "the Fund" or "the Company")

Acquisition of 31 completed medical centres

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 consistent with its plans to continue to grow its portfolio, it has completed its most significant acquisition to date of a portfolio of 31 completed and fully let primary care medical centres. The purchase is by way of a corporate acquisition for an initial cash consideration of £16.1 million including transaction costs of £1.6 million, and the assumption of existing debt of £63.8 million.

This portfolio of high quality assets is based throughout England and Scotland and increases MedicX Fund's total property portfolio to 106 properties of which 95 are complete and operational/fully let and 11 are under construction. The Fund's total annualised rent roll for all properties following the acquisition increases to £24.6 million from £18.7 million with the portfolio as a whole having an average unexpired lease term of 17.4 years.

The portfolio has been acquired for a cash yield of 6.04% based on a total acquisition cost of £91.9 million including the estimated cost of resetting the debt to a current mark to market historic low rate of 4.13%. This compares to the Fund's net initial yield valuation as at 31 March 2012 of 5.87%. The Company's intention is to reset the debt as soon as practical which, at current rates, would result in the Fund locking into an unprecedented spread of 1.9% between the acquisition yield and the long term borrowing cost. This portfolio acquisition meets the Fund's investment criteria, and will generate long term secure cash flows and value for shareholders, as well as significantly increasing dividend cover going forward.

The expected initial impact on adjusted net asset value based on the Jones Lang LaSalle (the Fund's valuer) valuation of £84.9 million is a decrease of £6.8 million equivalent to negative 2.7 pence per share. The Jones Lang LaSalle valuation assumes industry standard purchaser costs of 5.8% (being £4.9 million or 1.9 pence per share) which do not necessarily reflect the reduced costs which would be payable on a corporate acquisition of this nature. Part of the £6.8 million also represents a small premium payable on acquiring a quality portfolio of this nature. Significant asset management opportunities have been identified by the Investment Adviser that are expected to result in valuation uplifts over time. The discounted cashflow net asset value of the acquisition, based upon the Fund's standard discounted cashflow assumptions of a discount rate of 7%, 2.5% rental growth and 1% capital growth per annum, represents an uplift of £5.2 million or 2.0 pence per share.

The debt has an average term of 15.3 years, the current debt service cover is estimated at 124.7%, which is expected to improve further following resetting the debt costs, compared to the covenant of just less than 100%. There are no loan to value covenants associated with the debt.

Following this acquisition and resetting the debt, the Fund will have total debt facilities (including undrawn amounts) of £250.9 million with a weighted average estimated fixed cost of 4.37% (incorporating the acquired debt at the current fixable rate of 4.13%) and term of 17.5 years. Post the acquisition, taking into account committed investment not yet funded, the Fund's gearing is estimated to be 55.0%.

David Staples, Chairman of MedicX Fund, said "Having already acquired 13 properties since 1 October 2011, we are delighted to have closed this corporate acquisition of a further 31 completed and fully let purpose built primary care medical centres.

Total committed investment since 1 October 2011 is now £144 million which takes the amount of committed investment in the Fund's portfolio to £392 million. These investments will enable the Fund to fully draw down its existing debt facilities and utilise the equity proceeds raised earlier in the year reducing any cash drag impact on returns.

Following this acquisition approximately 2% of the UK population will be registered in GP practices within buildings owned by the MedicX Fund.

The portfolio continues to perform well and the Company continues to deliver a good level of return for its shareholders."

Mike Adams, Chief Executive Officer of MedicX Adviser, the Investment Adviser, said "This represents the greatest opportunity to date for the Fund to lock into an unprecedented spread between the cash yield on acquisition and the long term fixed cost of debt. The return on the acquisition will increase over time as a result of rental growth and asset management."

End

For further information please contact:

MedicX Group +44 (0) 1483 869 500

Keith Maddin, Chairman

Mike Adams, Chief Executive Officer

Mark Osmond, Chief Financial Officer

Canaccord Genuity Limited +44 (0) 20 7523 8000

Andrew Zychowski/Helen Goldsmith

Buchanan +44 (0) 20 7466 5000

Charles Ryland/Gabriella Clinkard

MedicX Fund Limited +44 (0) 1481 723 450

David Staples, Chairman

Information on MedicX Fund Limited

MedicX Fund Limited ("MXF", 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 106 properties.

The Investment Adviser to the Company is MedicX Adviser Ltd, which is authorised and regulated by the Financial Services Authority and is a subsidiary of the MedicX Group. The MedicX Group is a specialist investor, developer and manager of healthcare properties with 28 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) is incorporated into, or forms part of, this announcement.