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Public Service Properties down to handful of German assets

Public Service Properties has announced its results for the year ended 31 December 2014. These have in large measure been superseded by the sale of its UK care home market and ancillary businesses for cash on 4 March 2015 and the sale of three of its German care homes in November 2014 and January 2015. The UK transaction comprised the sale of companies, businesses and assets to the Group’s tenant, the Embrace Group for c£34.5m.  They got about £12.4m for the three German properties.  After paying back £25.7m of debt and associated costs, they got net proceeds from the UK and German disposals of approximately £15.8m plus a further £2.5m which is deferred until the end of this year. They say there are ongoing discussions which may result in the disposal of some or all of the remaining German assets which the Company will announce as required.

What’s left is five care home properties in Germany. These generated gross rental income of approximately £1.7m for the year ended 31 December 2014 and were valued at £16m. There’s debt secured on these of £3.4m and they pay 4.1% interest on this.

The net asset value fell from 49.2p to 34.6p over the year as, in aggregate, they got less for the value of the portfolio than they were valuing it for at the end of 2013.

PSPI : Public Service Properties down to handful of German assets

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