Circle Holdings PLC Contract (4540B)
04 Aprile 2017 - 8:01AM
UK Regulatory
TIDMCIRC
RNS Number : 4540B
Circle Holdings PLC
04 April 2017
FOR IMMEDIATE RELEASE 4 APRIL 2017
Circle Holdings plc
(the "Company" or "Circle")
Circle signs contracts for new Circle Birmingham hospital
construction
Circle Holdings plc (LSE: CIRC) today announces that the Group
has entered into agreements with affiliates of Medical Properties
Trust Inc. ("MPT"), a listed US-based real estate investment trust
(NYSE: MPW), for the financing and development of Circle's next
state-of-the-art hospital in Birmingham.
The facility will be developed within the old Pebble Mill site
in Edgbaston, Birmingham, which is currently being developed more
broadly by Calthorpe Estates to become a leading healthcare
campus.
Under the terms of the agreements, Circle will sell its
long-term lease on the Birmingham plot to an affiliate of MPT for
GBP2.7 million and MPT will develop a 39-bed, 6,500 sqm2 acute care
facility to be operated by Circle, with scope to expand to a
six-theatre hospital. Construction of "Circle Birmingham" is
expected to commence within four weeks, with practical completion
scheduled for Q4 2018. Upon completion, Circle will enter into a
15-year full repairing and insuring lease with MPT for the
facility, which may be extended at Circle's option for up to three
additional 5-year terms (the "Lease"). Circle expects to commence
treating patients at Circle Birmingham towards the end of 2018 /
early 2019.
The total development costs for the facility are anticipated to
be approx. GBP32.3m (inc. VAT). Under the terms of the Lease,
Circle will provide MPT with a cash deposit equal to one-year's
rent, half of which will be released once Circle Birmingham
delivers two consecutive quarters of an EBITDAR-to-rent ratio of
1.75 or greater.
Circle and MPT are currently considering proposals to expand the
facility to include a separate rehabilitation wing to be operated
by Circle's recently formed joint venture with VAMED Management und
Service GmbH.
Paolo Pieri, CEO of Circle Holdings, said:
"This is an exciting step forward for Circle to further scale
its hospital operations in the UK. Circle has a track record of
building amazing facilities for the benefit of its patients, staff
and clinicians. This facility will have state-of-the-art technology
and we expect it to be the first new build hospital to integrate
leading edge rehabilitation. We would like to thank all our
partners, including MPT, Calthorpe Estates and the clinicians in
the Birmingham area that have helped make this a reality."
.
Edward K. Aldag, Jr., Chairman and CEO of Medical Properties
Trust, said:
"We are very pleased to be selected as the developer of the
Circle Birmingham hospital. This investment, our second in the UK
and with Circle, demonstrates our enthusiasm for and commitment to
continued geographic and operator diversification. The Circle
Birmingham hospital will certainly be a wonderful addition to our
portfolio."
For further information, please contact:
Circle Holdings plc +44 (0)20 7034 5258
Michael Kirkwood, Chairman
Paolo Pieri, Chief Executive Officer
Alex Singleton, Head of Communications and Marketing
Numis Securities Limited +44 (0)20 7260 1000
Michael Meade, Richard Thomas Nominated Adviser
Alex Ham, Ben Stoop Corporate Broking
About Circle
Established in 2004, Circle Holdings plc is an employee co-owned
group dedicating to empowering clinicians and healthcare
professionals to redefine the delivery of healthcare in the UK.
Circle's NHS and independent healthcare operations include two
independent hospitals, Circle Bath and Circle Reading, the
Nottingham NHS Treatment Centre, and the management of integrated
musculoskeletal (MSK) services on behalf of local commissioners in
Bedfordshire and Greenwich. Circle is currently building its latest
state-of-the-art independent hospital in Birmingham.
For more information please visit www.circleholdingsplc.com and
www.circlehealth.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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