Care home operator Southern Cross has continued its disposal programme by agreeing to sell its freehold interest in a property in Somerset.
Torrwood Care Centre is to become part of Sovereign Property Holdings’ portfolio after the parties agreed a £7.8 million cash fee.
The annual rental income for the property is £600,000, and the transaction expected to be completed ithis month.
This is Southern Cross’ seventeenth such disposal since the start of the summer in a bid to reduce its debt, with the previous deals raising a combined £51.8 million.
The group has also completed a refinancing with a banking syndicate.It replaced its four original tranches of debt, two for working capital and the other two for acquisitions, with three separate loans.
The re-financing has given it an extra £8 million to spend with an additional £12 million to meet the group’s needs during the Christmas and the New Year period. Southern Cross chairman Ray Miles said the banking arrangement puts the company ‘firmly back on track’ to develop shareholder value.