Business
Morgan Sindall sells medical property investments
Morgan Sindall sells medical property investments.
About this update from Morgan Sindall Group Plc
[{"type":"text","content":"\n \nRNS Number : 2032I Morgan Sindall Group PLC 23 July 2012 \n \n\n \n23 July 2012\n \nMorgan Sindall Group plc\nMorgan Sindall sells medical properties investments for £24m\n \nMorgan Sindall Group plc today announces that its Investments division, Morgan Sindall Investments Limited ('MSIL'), has sold its NHS LIFT and medical properties investment interests in Community Solutions Investment Partners Limited ('CSIP') and CSPC 3PD Limited ('CSPC 3PD') and has acquired the 50% shareholding in Community Solutions Management Services Limited ('CSMS') held by its joint-venture partner, Barclays European Infrastructure Fund II LP ('BEIF II'). The total consideration received by the Company is £23.9m.\nMSIL has sold its shares in CSIP to Equitix Healthcare 2 Limited ('Equitix') and its shares in CSPC 3PD to MedicX Properties VII Limited ('MedicX'), a subsidiary of MedicX Fund Limited.\nThe cash consideration received on completion is above the directors' current valuation for the investments and represents a valuation discount rate on the future cash flows within the Group's range for such rates of 7-9%. For the year ended 31 December 2011, the investments contributed £1.2m in operating profit and had a book value of £11.7m. \nThe disposals are in line with the Group's strategy of realising investments as they mature, in order to redeploy capital into new projects. The Group continues to see investment potential within the health sector and will retain an interest in CSIP providing the opportunity to invest jointly with Equitix in new developments created by CSIP. \nFollowing the transaction, MSIL will wholly own CSMS, which will continue to provide the management services to CSIP's investments under existing management service agreements. \nPaul Smith, Chief Executive, commented \"These transactions enable the Group to recycle its capital into other developing markets and investment opportunities, whilst at the same time providing the opportunity to work with Equitix on new healthcare developments in the future.\"\nEND\n \nNOTES TO EDITORS:\n \nAbout Community Solutions I...