Medicx Fund Regulatory News (MXF)

2 Nov 2006 08:01

The MedicX Fund Limited 02 November 2006 FOR IMMEDIATE RELEASE 2 NOVEMBER 2006 NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, NEW ZEALAND, IRELAND OR SOUTH AFRICA ADVERTISEMENT This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or any other securities, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with, any contract thereof. This document is an advertisement and not a prospectus, and investors should not subscribe for or purchase any shares referred to in this document except on the basis of the information in the prospectus published by the Company on 17 October 2006 (the 'Prospectus'). Prospective investors should only rely on the information contained in the Prospectus. No person has been authorised to give any information or make any representation other than those contained in the Prospectus. If given or made, such information must not be relied upon as having been authorised by the Company or Panmure Gordon (UK) Limited ('Panmure Gordon'). MedicX Fund Limited ('MedicX Fund', 'the Fund' or 'the Company') First Day of Dealings on the Official List of the London Stock Exchange MedicX Fund Limited (MXF), an investment company which intends to invest mainly in modern, purpose built primary healthcare properties in the United Kingdom, today announces that its shares have started trading on the Official List of the London Stock Exchange. Placing highlights: • Placing and subscription proceeds of £55.9 million, before expenses • Placing price of 100 pence per share (the 'Placing Price') • Ticker symbol MXF • The official sponsor, financial adviser and stockbroker is Panmure Gordon • Shares commenced trading at 08:00 today Commenting on this announcement, Jorge Tavares, Chairman of MedicX Fund Limited, said: 'We expect the MedicX Fund to be a leading investor in UK primary health care properties and we are delighted to have raised a significant fund and to have joined the Official List of the London Stock Exchange today. We believe there is a significant market opportunity ahead of us, lead by strong industry dynamics and focused around GPs within the UK. We look forward to exploring this opportunity and developing the Company in this exciting market.' The Fund • The investment objective is to achieve rising rental income and capital growth from the ownership of a portfolio of mainly modern, purpose-built, primary healthcare properties. • It is self-managed with property advice from MedicX Adviser Ltd, a member of the MedicX Group, a specialist developer, investor and manager of primary healthcare properties. • The investment policy is to acquire primary healthcare properties in the United Kingdom, which will be sourced in the market or from the MedicX Group's pipeline of development and investment opportunities. • The rental costs of those parts of premises used for the provision of primary healthcare by GPs are predominantly reimbursed to GPs by Primary Care Trusts or Local Health Boards ('PCTs'). The Company's directors (the 'Directors') may seek additional rental income from other providers of healthcare services. The Investment opportunity • The Directors believe that this segment of the primary healthcare property market represents an attractive opportunity for the following reasons: - increasing demand for modern assets with flexible design characteristics; - long average lease terms (15 to 25 years) generating secure cash flow; - low default risk due to the nature of funding for GP practices; - properties are generally let when acquired with low levels of rental voids; - rental growth potential; and - potential for significant capital values at lease expiry. • Dividend yield at the Placing Price intended to be 5p per Share in the first year and expected to be maintained in real terms in line with increases in RPI, plus an average growth of 2.5% per annum in Net Asset Value (NAV) over a 10 year period. • Total projected return over ten years approximately 100%. The Industry Dynamics • 80% Doctor's surgeries too small, only 40% purpose built, 50% adapted houses/shops (DoH, January 2006) • Only 21% surgeries privately owned (DoH, September 2003) • Between 1995-2005: (DoH, September 2006): - Total number of GPs increased by 18% to 32,738; - Single-handed practices declined 25% to 2,176, resulting in a reduction in total practices of 8% to 8,451; - Salaried GPs increased from 0 to 9,812; - Part-time increased from 14% to 27%; - 60 and over increased from 6.3% to 8.6%. The Market Opportunity • Majority of surgeries not fit for purpose • Doctors partnerships increasingly capital constrained as property values increase • Modern surgeries now mostly developed and owned by third parties • Ageing population will create additional demand • Primary Care cornerstone of Government NHS policy. The Current pipeline The MedicX Group has a pipeline of development projects, which is estimated by the Company to be worth approximately £73 million in value when fully developed. The pipeline of development projects comprises 21 projects for which the MedicX Group has been appointed by GPs or PCTs as preferred developer. The MedicX Group has also agreed with third parties non binding heads of terms to acquire and fund the development of a further 18 properties with an estimated value of £74 million, although no assurance can be given that some, or any, of the above projects will be completed. For further information please contact: MedicX Group +44(0) 1252 704 272 Keith Maddin, Chairman Mike Adams, Managing Director Panmure Gordon & Co +44 (0) 20 7459 3600 Edward Farmer / Stuart Gledhill Buchanan Communications +44 (0) 20 7466 5000 Lisa Baderoon / Charles Ryland / Mary-Jane Johnson Capitalised terms used in this announcement shall, unless otherwise defined or the context otherwise requires, have the meaning given to them in the Prospectus. The contents of this announcement have been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 as amended ('FSMA') by Panmure Gordon. Panmure Gordon is authorised and regulated in the United Kingdom by the Financial Services Authority in respect of regulated activities and is acting as sponsor and broker to the Company. Panmure Gordon is acting solely for MedicX Fund Limited in this regard and will not be responsible to anyone other than MedicX Fund Limited for providing the protections afforded to clients of Panmure Gordon. This announcement is not for release, publication or distribution, in whole or in part, in or into the United States, Canada, Japan, South Africa, New Zealand, the Republic of Ireland or Australia (the 'Prohibited Territories'). The Shares have not been and will not be registered under the United States Securities Act of 1933 (as amended), the United States Investment Company Act of 1940 (as amended) or under the applicable securities laws of the other Prohibited Territories and, unless an exemption under such laws is available, may not be offered for sale or subscription or sold or subscribed directly or indirectly within the USA or the other Prohibited Territories or for the account or benefit of any national, resident or citizen of the USA or the other Prohibited Territories. Copies of the Prospectus will be available during normal business hours on any weekday (Saturdays, Sundays and public holidays excepted) at the Company's registered office and at the offices of Panmure Gordon, Moorgate Hall, 155 Moorgate, London EC2M 6XB for 14 days following Admission. The Prospectus is also available at the document viewing facility of the UKLA at the UKLA Document Viewing Facility, Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.