Acquisition

    RNS Number : 1003K
  Boundary Capital PLC
  14 December 2008
   

    Boundary Capital plc ("Boundary")

    Investment in Synchrony Properties Limited ("Synchrony")

    Boundary, an Irish-based investment holding company, today announces that it has been allotted a 60% shareholding in Synchrony.
Synchrony is a special purpose company which has signed a Project Agreement with the St James's Hospital ("St James's") to provide a
co-located hospital facility on the grounds of St James's in Dublin.

    Signing of the Project Agreement marks a significant stage in the co-location project with St James's and opens the way for an
application for planning permission and the finalisation of the financing arrangements for the construction of a new hospital facility on
the grounds of St James's, providing an additional 195 in-patient beds, 72 outpatient beds and eight operating theatres.

    With almost 1,000 inpatients beds, St James's Hospital is the largest in the country and treats approximately 300,000 patients per year.
It is one of the eight designated national cancer centres and provides national clinical specialities in a wide range of areas.

    The Boundary shareholding in Synchrony has been acquired for nil consideration. In accordance with the shareholders agreement signed by
Boundary and other shareholders in Synchrony, Boundary may but will not have to fund the working capital required to secure planning
permission and financing. 

    Under the terms of the agreement signed with St James's, Synchrony has been granted a 65 year lease on the hospital site and a licence
to construct a hospital on that site. A performance bond with a maximum limit of EUR20 million was also entered into. Boundary will
guarantee the performance bond on behalf of Synchrony and has entered into a relationship and risk management agreement with St James's the
HSE and Synchrony in this regard. The performance bond can be called against costs, losses or damages arising in the event Synchrony
defaults under the agreement, the most notable obligation being to use reasonable endeavours to pursue planning permission and financing
over the next 24 months. No construction will commence during the life of this bond and the directors believe that the maximum contingent
liability arising for Boundary is EUR1m.

    The transaction is deemed to be a related party transaction and as such was approved by the independent directors, Michael Walsh and
Paddy Murphy (Niall McFadden's family indirectly hold a shareholding in Synchrony and Eugene McCague is a director of the HSE). The
independent directors, having consulted with the nominated adviser and IEX adviser, consider that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.

    For further information please contact:

 Boundary Capital plc
 Mark Buckley            Tel:  + 353 1 40 0500

 Davy Corporate Finance
 Des Carville            Tel:  + 353 1 679 6363



    Additional Information

    St James Hospital
    St James is the largest hospital in Ireland (c1,000 beds) and has the largest number of consultants in Ireland (c140 consultants). It
has the largest cancer and cardiac centre in Ireland. The hospital is strategically located in the centre of Dublin with three Luas stops on
site and connected by Luas (one stop) to Heuston Station (Irish Rail's national hub). The hospital is situated on a 60 acre campus with
access from James's Street and South Circular Road.


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
ACQUSVURWNRUAUA