Portfolio management: Spire Tunbridge Wells

Spire Healthcare Group plc (LSE: SPI), a leading independent healthcare group in the UK, announces the sale of one of its leasehold hospitals, Spire Tunbridge Wells, to the Maidstone and Tunbridge Wells NHS Trust ('the Trust'), a major acute hospital trust in the south-east of England. The transaction includes the sale of the business and assets of Spire Tunbridge Wells. The consideration was £9.975m. The sale was completed on 31 March 2024.

Spire Healthcare remains committed to growth and takes a consistent and proactive approach to portfolio management. Following the transaction, the Group operates 38 hospitals (19 freehold and 19 leasehold properties). This transaction reflects Spire Healthcare's continued focus on disciplined capital allocation and meeting its stated ROCE targets.

Following completion of the transaction for a period expected to be around six months, Spire Healthcare will manage the hospital operations on behalf of the Trust continuing to provide treatment to both private and NHS patients.

Spire Tunbridge Wells is rated Good by the CQC, comprising 28 beds, 10 consulting rooms, 2 operating theatres and an endoscopy suite. Approximately 130 consultants operate from the hospital. For the year ended 31 December 2023, the hospital generated revenue of £12.7m and EBITDA of £1.1m. Leasehold rent incurred during the period was £0.4m and net cash generation (excluding working capital movements) was £0.7m. Capital expenditure during the year was £0.4m.