Public Service Properties selling assets in Germany

PSPI : Public Service Properties selling assets in Germany

Public Service Properties has announced the sale of two care homes in Langen and Luzerath in Germany leased to Marseille Kliniken AG. They will get €13.4m in cash and will use €10.7m of the proceeds to pay down debt associated with their German investments – reducing the LTV on the German portfolio to 31.3%. The care homes threw off EBITDA of €1.3m and profit of €0.7m for PSPI over 2013.

They say “the consideration payable represents a discount of 1.8 per cent. to the latest independent valuation (net of estimated buyer’s costs) undertaken by Colliers International at 30 June 2014, and a 7.5 per cent. discount to the carrying value of the assets as set out in the Company’s unaudited interim results for the six months ended 30 June 2014 (gross of estimated buyer’s costs), announced on 26 September 2014” which begs a question as to why the independent valuation wasn’t used for the interims.

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