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CareCapital Group

  • BY: Andrew Hore |
  • POSTED: 08/02/2010 |

Healthcare properties developer CareCapital Group has sold 14 of its UK primary care investment properties for £23.5m.

The properties were in the books for £23m and generated £1.41m a year in rental income – around one-half of the group’s total rental income. The buyer is fully listed Primary Health Properties, which has also entered into a first right of refusal agreement for the funding and acquisition of up to seven other development properties.

CareCapital has found it difficult to finance the development of its new properties because of its low share price and the difficulties in obtaining debt. The cash will help it to repay debt and finance its developments, which have a developed value of more than £80m.

The Aldershof development in Berlin is scheduled to be completed in March. This will increase the value of the remaining portfolio to £34m.

The diluted net asset value fell from 22.5p a share to 18.5p a share at the end of June 2009. Daniel Stewart reckons that the current fully diluted net asset value is just over 10p a share.

At 4.125p a share, up 1.5p on the day, CareCapital is valued at £3.17m. That is a big discount to NAV for as steady a sector as primary healthcare properties.

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