The MedicX Group, which runs the popular MedicX fund, is to be acquired by Octopus in a transaction that will boost the boutique’s assets by around £1 billion.
The closed-ended MedicX fund is a specialist investor in primary healthcare properties, with total assets of £489 million, that has long been an income pick among wealth managers including Investec, Rathbones and Brewin Dolphin thanks to its 6.9% yield.
Over the past three years the MedicX fund, which trades on a 34% premium to its net asset value, has returned 33.5% compared with 28.4% from the MSCI World Real Estate index.
Octopus has now agreed to buy the fund’s parent group, including the management team, which the firm stated would take assets under management at Octopus from £3.5 billion at present to approximately £4.5 billion.
MedicX is being sold by several other investors, Cabot Square Capital among them. The deal is subject to approval from the Financial Conduct Authority, but is expected to complete by the end of September 2014.
Mike Adams, chief executive of MedicX Group, will continue to work with his existing team in the same role on the MedicX fund.
David Staples, chairman of the MedicX fund, confirmed that there would be ‘no change in the strategy, nor the investment advisory agreement’.