Cancer care healthcare group Rutherford Health has agreed a £40 million infrastructure investment with Equitix Investment Management.
Rutherford Health operates four centres in Wales, Reading, Northumberland and Liverpool, offering a range of cancer treatments.
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 25 years at normal commercial rates, after which Rutherford can opt to repurchase the freehold of the South Wales centre for a nominal sum.
Rutherford stated it will use the proceeds for further investment in its infrastructure and the provision of working capital for its medium-term development.
Of the £40 million, £25 million 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 Rutherford anticipates doing so within the next three months. The initial payment will be used to repay its current debt of £18.6 million with TP Leasing in full, leaving the group debt free.
Offering proton beam therapy, radiotherapy, imaging and chemotherapy, the Rutherford Cancer Centre South Wales was the first Rutherford centre to be operational in April 2018. It was the first centre to offer proton beam therapy and the first to treat a patient in the UK.
Mike Moran, chief executive of Rutherford Health, said: “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 further as the group’s longer-term funding strategy is developed.”
Hugh Crossley, chief information officer for Equitix added: “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.”
Date published: March 23, 2021