Spire Cheshire Hospital sold for £89m

Hospital operator Spire Healthcare has sold Spire Cheshire hospital, a 42-bed hospital in Cheshire, to NorthWest Healthcare Properties REIT for £89 million.

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

The deal would generate a book profit of around £23 million on gross assets of £66 million.

Spire said: “The sale proceeds of the transaction will provide financial flexibility for post Covid-19 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.”

Spire Healthcare is a UK-based private hospital group with 40 private hospitals and eight clinics across England, Wales and Scotland. In 2020, it delivered care to 750,000 in-patients and daycase patients. Account fillings have the company’s revenue at £919.9 million for 2020.

Following the deal and the sale of its Sussex hospital, which is due to complete in Q1 2022, Spire Healthcare will comprise 19 freehold and 20 leased properties.

Mansfield Advisors provided due diligence to NorthWest Healthcare Properties REIT.

Date published: December 22, 2021

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