Equitix completes second investment with Rutherford Health for £40 million
Equitix has agreed a second infrastructure investment for £40 million with Rutherford Health, a healthcare group committed to providing innovative cancer care of the highest quality.
The investment is backed by the freehold transfer of the Rutherford Cancer Centre South Wales and supported by other security to be put in place over the Group’s other centres. The agreement is for a term of 25 years on normal commercial rates on the expiry of which the Group will have the option to repurchase the freehold of the South Wales centre for an agreed nominal sum.
The proceeds from the investment will be used by the Group for further investment into its infrastructure as well as used to provide working capital for the Group’s development for the medium term. Of the £40m, £25m is payable immediately with the balance payable in three equal tranches following the grant of additional security over the other centres. The additional funds need to be drawn down within six months although the Group anticipates doing so within the next three months. The initial payment will be used to repay the Group’s current debt of £18.6m with TP Leasing Limited in full, leaving the Group debt free.
Offering state-of-the-art proton beam therapy as well as the latest technology in radiotherapy, imaging and chemotherapy, the Rutherford Cancer Centre South Wales was the first Rutherford centre to be operational in April 2018. It was also the first centre to offer proton beam therapy and the first to treat a patient in the UK in April 2018.
Hugh Crossley, CIO for Equitix said: “We are delighted to work in partnership with Rutherford to provide the financing for the Cancer Centre. We have demonstrated a strong track record in our ownership and management of healthcare assets, particularly in this time of crisis where we have been working to support the NHS and, as such, we are pleased to be further consolidating our capabilities and adding these assets to our institutional investment portfolios.”
Mike Moran, CEO of Rutherford Health, commented: “This infrastructure investment is the next stage in our long term development strategy and enables us to move forward debt free and with sufficient working capital for our immediate needs. The inflow of funds also broadens our options for the longer term. We are a resilient business, well positioned to grow further, bringing essential cancer care to more patients and supporting the NHS to address the crisis in cancer treatment. We look forward to updating the market as the Group’s longer term funding strategy is developed. ”