Morgan Sindall checks out of medical property investments

RUGBY construction firm Morgan Sindall has sold its medical property investments for £24m.

It has sold its NHS LIFT and medical properties investment interests in Community Solutions Investment Partners (CSIP) and CSPC 3PD but has acquired the 50% shareholding in Community Solutions Management Services (CSMS) held by its joint-venture partner, Barclays European Infrastructure Fund II.

Morgan Sindall has sold its shares in CSIP to Equitix Healthcare 2 and its shares in CSPC 3PD to MedicX Properties VII, a subsidiary of MedicX Fund Limited.

For the year ended December 31, 2011, the investments contributed £1.2m in operating profit and had a book value of £11.7m.

Morgan Sindall says the disposals are in line with its strategy of realising investments as they mature, in order to redeploy capital into new projects.

The group says it 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.

Following the transaction, Morgan Sindall’s investment arm will wholly own CSMS, which will continue to provide the management services to CSIP’s investments under existing management service agreements.

Chief executive Paul Smith said: “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.”

CSIP invests in community-based health, social and local authority services. It is currently the private sector partner in eight NHS LIFT areas and has developed a portfolio of 36 buildings extending to circa 75,000 sq m since its creation in 2002.

It was a 50/50 joint venture between MSIL and BEIF II, which has also sold its interest to Equitix.