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MedicX injects 31 primary care centres

MedicX Fund, the healthcare property investor, has bought 31 primary care medical centres for £91.9m through a corporate acquisition.

It made the purchase from a joint venture between Morgan Sindall Investments and Barclays European Infrastructure Fund II for £16.1m in cash and the assumption of existing debt of £63.8m. The initial yield is 6.04%.

The acquisition cost of £91.9m includes the estimated cost of resetting the debt to a mark-to-market rate of 4.13%. MedicX said it wanted to reset the debt as soon as practical, which, at current rates, would result in it locking into "an unprecedented spread of 1.9% between the acquisition yield and the long term borrowing cost".

The purchase increases MedicX Fund's portfolio to 106 properties, of which 95 are completed, operational or fully let and 11 are under construction.

Source: Property Week