Spire Healthcare sells Cheshire hospital in £89m deal

Spire Cheshire

Spire Healthcare Group has sold the freehold assets of Spire Cheshire for £89m.

The independent hospital group sold the assets through the sale of the shares in a wholly owned subsidiary in which the property is held to NWI Jersey.

The transaction has generated a book profit of approximately £23m on gross assets of £66m.

Spire Healthcare will continue to operate the hospital and will lease the property at an initial rent of £3.8m, with annual rent inflation linked to CPI and capped at 4%.

Net proceeds after deal costs and applicable taxes are expected to be £85m.

The group said in a statement: “The sale proceeds of the transaction will be used to provide financial flexibility for post COVID opportunities, and an improved cash position while COVID-19 uncertainty continues and the company undertakes to re-finance its existing bank debt in 2022, which is due to mature in mid-2023.”

Following the transaction, the acquisition of the Claremont hospital, which completed on 30 November 2021, and the sale of the Sussex hospital, which is due to complete in Q1 2022, Spire Healthcare will have a portfolio of 19 freehold and 20 leased properties.

Spire Cheshire is a medium-sized hospital rated Outstanding by the CQC, comprising 46 beds, 3 main theatres and a minor operations room.

The group said the hospital generates an EBITDA margin in line with the group average and the “transaction will have no impact on the operation of the hospital or patient care.”

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