Assura Group Limited (“Assura”), the leading primary care property investor and developer is pleased to announce that it has acquired the entire issued share capital of Park Medical Services Limited (“Park Medical”).
Park Medical owns The One Life Building in Middlesbrough. The 3,300 square metre property accommodates a GP practice, a pharmacy, a day case operating theatre, community services, mammography and x-ray services along with other outpatient services. Park Medical is recognised as an important element of the health infrastructure of Middlesbrough.
The property has been acquired from the GPs who originally developed the medical centre for a total cost of £12.3 million with passing rent of £0.8 million, which equates to a rental yield of 6.5%. 92% of the income is contracted to GPs or NHS bodies and has a weighted average unexpired lease term of 14.1 years.
The net consideration is £2.7 million in cash for the equity of the acquired business. Assura is assuming the existing debt of £8.7 million which has a maturity of 11.6 years and an average fixed interest rate of 6%. A provision of £0.9m has been reflected in the purchase price representingthe full cost of re-pricing the debt to current market rates at today’s date and provides Assura with the flexibility to re-price or redeem efficiently in the future.
Following the transaction Assura now owns 233 medical centres and has a contracted rent roll of £48.9 million.
Commenting Graham Roberts, Chief Executive of Assura said:
“The One Life Building, with the wide range of medical services it offers, is a prime example of the type of space that is needed to meet the increasing role that primary care is playing in the NHS. As such, it is in line with our strategy of adding high quality premises and income to our growing portfolio.”