Disposal

RNS Number : 7954G

CareCapital Group plc

08 February 2010

 



8 February 2010

CARECAPITAL GROUP PLC

("CareCapital" or "the Company")

Sale of Part of UK Property Portfolio

CareCapital Group plc (AIM: CARE), the healthcare real estate developer and investor, announces that it has disposed of part of its UK property portfolio, comprising 14 primary care investment properties, through the sale of Sinclair Montrose Properties Limited ("SMP"), a wholly owned subsidiary of CareCapital (the "Disposal"), to Primary Health Investment Properties Limited ("PHP") for a consideration of £23.5 million payable in cash on completion.

The net cash proceeds, after the repayment of the senior debt within the SMP Group of Companies associated with these properties, will amount to approximately £4.4 million from which sum the majority of the Company's short term financing will be repaid with the balance to be used as working capital.

At 30 September 2009, the properties included in the Disposal were valued at £22.95 million as included in CareCapital's interim accounts.  The properties' current rental income is £1.409 million per annum.

Additionally, CareCapital has entered into an agreement with PHP that provides for the funding and disposal on completion of further primary health care properties in CareCapital's development pipeline.

Dr Michael Sinclair, Chairman of CareCapital, commented: "This transaction has strengthened our balance sheet and provides a base from which to progress the opportunities in the remaining development pipeline.  This pipeline, as previously disclosed, has a combined developed value of over £80 million.

"The Company's current development at Adlershof in Berlin, which is fully pre-let, is scheduled for completion next month and, combined with the existing Adlershof building, will provide one of the most important medical buildings in Germany with a total of over 8,000 square metres of space let to over 50 medical tenants.  On completion of this building, the gross value of CareCapital's current portfolio of investment properties and completed developments will be approximately £34 million representing a net asset value for those assets in excess of £10.5 million."

For further information please visit www.carecapital.co.uk or contact:

CareCapital Group Plc		Daniel Stewart & Co. Plc		Tavistock Communications
	Paul Stacey, Chief Executive Steve Wilden, Finance Director		Simon Leathers		Simon Hudson Paul Young
	Tel: [phone]		Tel: [phone]		Tel: [phone]
	[e-mail] [e-mail]		[e-mail]		[e-mail] [e-mail]

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