Medicx Fund Regulatory News (MXF)

For immediate release

26 January 2017

MedicX Fund Limited

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

Joint Venture Agreement and Extension of GPIC Framework Agreement

MedicX Fund Limited announces that it has entered into a joint venture agreement with General Practice Investment Corporation Limited ("GPIC"), a leading developer of primary healthcare centres which has delivered over 200 schemes across the UK since it was established in 1995.

Pursuant to the joint venture agreement, a 50:50 jointly controlled company will be created which will be called GP Property Limited. GP Property Limited will be an investor in UK primary healthcare properties, let to GPs or directly to the NHS, which do not immediately meet the Fund's Investment Policy (for example, primary care properties with short leases of less than 15 years' unexpired term), but which may do in the future. GP Property Limited will look to make strategic investments in situations which are expected to lead to either asset management opportunities, or contracts to deliver new modern purpose built premises which, through active asset management (such as extensions, refurbishments, re-configurations, lease re-gears, etc.), could then meet MedicX Fund's investment criteria.

MedicX Fund is currently party to a framework agreement with GPIC, under which c.£77 million of modern purpose built primary healthcare properties have been delivered into the Fund since 2012 under the Company's current published Investment Policy. At the same time as entering into the joint venture agreement with GPIC, the existing framework agreement, which gives MedicX Fund the exclusive right to acquire, by way of forward funding, new primary healthcare schemes from GPIC, will be extended for a further five years and will no longer be terminable on 6 months' notice.

MedicX Fund will finance the joint venture by way of subscribing in cash for non-voting preference shares in GP Property Limited, in return for a preferred 5% per annum return, topped up to 8% compounded on disposal of investment properties or sale into MedicX Fund where the assets then meet the Fund's Investment Policy. Any realised profits over the 8% compounded return will be shared on a 50:50 basis between MedicX Fund and GPIC.

MedicX Fund has initially agreed to commit to the joint venture up to £15 million of funding on a project by project basis, and GPIC will provide asset management and development expertise and services. In the event that GP Property Limited is presented with further strategic investment opportunities requiring funding materially in excess of the initial £15 million commitment, approval from shareholders of the Fund will be sought for additional funds and an amendment of the Fund's Investment Policy. MedicX Fund will have an option every 5 years to directly acquire new or upgraded properties delivered by GP Property Limited that meet the Fund's Investment Policy.

GP Property Limited will be permitted to borrow up to 50% of its gross asset value although no facilities are contemplated in the near term. Octopus Healthcare Adviser will provide property management, rent collection and back office accounting services, as well as sourcing investment opportunities, with the aggregate fee payable to Octopus Healthcare Adviser by the Fund and GP Property Limited being no greater than would have been paid by the Fund if GP Property Limited's properties were owned directly by the Fund under the existing Investment Adviser Agreement.

David Staples, Chairman of the Fund, commented: "We are pleased to have agreed this important strategic alliance with GPIC which allows the Fund to cement our relationship and work closely with a best in class developer to accelerate the Fund's growth by enabling it to partner with healthcare provider groups to deliver their estate transformation strategies".

MedicX Fund and GPIC have each nominated three directors who will form the board of GP Property Limited, who have been selected from the non-executive directors of MedicX Fund and the senior management of GPIC and Octopus Healthcare Adviser Ltd.

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For further information please contact:

MedicX Fund +44 (0) 1481 723 450

David Staples, Chairman

Octopus Healthcare Group +44 (0) 20 3142 4820

Mike Adams, Chief Executive Officer

Canaccord Genuity +44 (0) 20 7523 8000

Andrew Zychowski/Helen Goldsmith

Buchanan +44 (0) 20 7466 5000

Charles Ryland/Victoria Hayns

Information on MedicX Fund Limited

MedicX Fund Limited (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 and Ireland, listed on the London Stock Exchange, with a portfolio comprising 152 properties.

The Investment Adviser to the Company is Octopus Healthcare Adviser Ltd, which is part of the Octopus Healthcare group. Octopus Healthcare invests in and develops properties as well as creating partnerships to deliver innovative healthcare buildings to improve the health, wealth and wellbeing of the UK. It currently manages over £1 billion of healthcare investments across a number of platforms, with a focus on four core areas: GP surgeries, care homes, retirement housing and private hospitals. Octopus Healthcare is part of the Octopus group, a fast-growing UK fund management business with leading positions in several specialist sectors including healthcare property, energy, property finance and smaller company investing. Octopus manages £6 billion of funds for more than 50,000 retail and institutional investors.

Octopus Healthcare Adviser Ltd is authorised and regulated by the Financial Conduct Authority.

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 form part of, this announcement.

The Company's Legal Entity Identifier is 2138008POF35FTNFCB25.