FINANCE: M&G Investments has signed a £233m sale and leaseback agreement with The Priory Group on six hospitals.
The Priory Group is an independent provider of specialist care known for its rehabilitation centres for addictions, depression, eating disorders and OCD.
M&G has acquired the freehold of the properties, which have been leased back to The Priory on a 30-year basis.
M&G was advised by M&G Real Estate, which in turn was advised by CBRE.
Ben Jones, director of real estate income at M&G Investments, said: “This transaction offers a secure, growing income for institutional investors and attractive long-term financing for a leading provider of private healthcare.
“Our many pension fund clients continue to seek very long term, secure and index-linked cash flows. M&G has been a longstanding provider of finance and we expect to complete more long-term refinancing deals of this kind with companies that have significant operational real estate assets. Increasingly we are working with businesses that are seeking to broaden their sources of finance.”
The six sites are in Altrincham, Bristol, Chelmsford, North London, Roehampton and Woking.
