£51.8m deal completed

Vector has successfully advised Southern Cross Healthcare Group Plc on the sale and leaseback of a portfolio of elderly care homes totalling £51.8m. A further £7.75m was sold in October, facilitating the restructuring of their current banking facilities, which became under pressure in July this year.

The sale and leaseback consisted of two tranches - approximately £30m in nine properties was sold to Daejan Holdings PLC, the privately owned property company. The remaining seven properties were sold for £20.7m to a private UK investor.

The sales were part of a program to raise money to pay off a credit facility that Southern Cross raised in early 2008 to fund additional acquisitions.

Vector continues to advise Southern Cross on the sale of a number of other property assets across their freehold portfolio.

(September 2008)