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11 Aug 2009 07:00
For Immediate Release 11 August 2009
MedicX Fund Limited
("MedicX Fund", "the Fund" or "the Company")
Interim Management Statement
MedicX Fund Limited (LSE: MXF), the specialist primary care infrastructure investor in modern purpose-built primary healthcare properties in the United Kingdom, today announces its Interim Management Statement for the period from 31 March 2009 to date.
Financial position
On 8 April 2009, the Fund raised gross proceeds of £15.0 million by issuing 21,750,000 ordinary shares by means of a placing and offer for subscription to the market. Against the background of the current economic climate, the Directors see this as a positive indication of the market's confidence in the Fund's investment objectives. The new equity financing provides the opportunity for the Fund to raise additional debt financing.
Investment activity
The Fund has performed in line with expectations since 31 March 2009.
In April 2009, the Company entered into a new forward funding agreement for £3.3 million on a property at Abergele. The Company successfully completed the development of one primary care centre at Lytham in May 2009. In this month of August 2009, the Company purchased a completed property at Bury, Lancashire for £13.2 million after costs. Properties remaining under construction are at Ossett and Abergele and these are due to complete in November 2009 and December 2009 respectively. The property portfolio is performing in line with long-term objectives and there are no material operational or financial issues to report.
To date the Company has made investments and commitments amounting to £182 million across 47 properties.
Market and property valuation
There have been limited transactions in the investment market. There are signs of some hardening of yields for prime properties in the commercial property investment market generally though it is too early to say the market has turned. Any valuation improvement should impact primary care properties, such as those within the MedicX Fund portfolio, which benefit from the long term secure income offered by government-backed primary care assets. The next external valuation is due as at 30 September 2009.
Changes to investment advisory fees
In conjunction with the equity raising, the Investment Adviser agreed to vary its fee calculation and no advisory base fee will be payable on gross assets between £150 million and £300 million. The Investment Adviser will be entitled to a performance fee equal to 15% of the amount by which the total shareholder return exceeds an 8% per annum compound hurdle rate calculated from the 69.0p issue price, subject to a high watermark and a cap on investment adviser fees of 1.5% of gross assets, excluding cash, in any year.
Dividends
On 10 July 2009 a dividend of 2.665p per ordinary share was paid to shareholders in respect of the six months ended 31 March 2009. The directors have approved a quarterly dividend of 1.3325p per ordinary share in respect of the period 1 April 2009 to 30 June 2009. The dividend will be paid on 30 September 2009 to ordinary shareholders on the register as at 4 September 2009. In the absence of unforeseen circumstances the Fund expects to pay a further quarterly dividend of 1.3325p per ordinary share on the last business day of December 2009, making a total of 5.33p per ordinary share in respect of the year ended 30 September 2009.
David StaplesChairman
-Ends-
For further information please contact:
MedicX Fund +44 (0) 1481 723 450
David Staples, Chairman
MedicX Group +44 (0) 808 202 5461
Keith Maddin, Chairman
Mike Adams, Managing Director
Buchanan Communications +44 (0) 20 7466 5000
Charles Ryland /Mary-Jane Johnson/Miranda Higham
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