MedicX Fund, has announced its fourth acquisition in Ireland having contracted to acquire, by way of forward funding, a new primary healthcare medical centre in Tallaght, Dublin 24. This is the second scheme being developed under the Framework Agreement with Feasible Developments and the property is due to be completed in December 2017.
Upon completion, the building will be let to a number of GPs, the Health Service Executive (the Irish NHS equivalent) and a pharmacy operator. The GP and Health Service Executive leases will be for a term of 25 years from practical completion and the pharmacy term will be 15 years. The rent for all tenants is subject to five-yearly CPI reviews. The total acquisition cost of the property is approximately €15.5 million.
It remains the belief of Octopus Healthcare Adviser and the Board that Ireland offers good yields for quality properties let on long leases, generating principally government backed income and making Irish healthcare property opportunities an attractive fit with MedicX Fund’s investment objective.
The acquisition will be part funded through borrowings drawn in Euros from a recently agreed facility with the Bank of Ireland, thereby providing a partial natural hedge against the Group’s Euro denominated assets. The new facility initially provides development finance at a margin of 4% over EURIBOR which then reduces to 3% once the asset reaches practical completion and the facility becomes a five year term loan.
The MedicX Fund’s total property portfolio comprises 157 properties throughout the United Kingdom and Ireland of which 152 are operational and fully let, with five under construction. The annualised rent roll for all properties is now £40.0 million.
MXF : MedicX makes fourth purchase in Ireland