View the article online at http://citywire.co.uk/wealth-manager/article/a760312
Octopus wraps tentacles around MedicX in £1bn deal
by Robert St George on Jul 04, 2014 at 13:19
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’.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.
More about this:
Look up the investment trusts
More from us
- Nick Sketch: investment trusts with an edge in income
- Investment trusts raise more in one week than all of 2012
- Pilling's Nigel Moore: my best investment idea
- Are investors hunting the wrong trusts for income?
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.